Raymond James reiterated a Strong Buy rating and $160 price target on Shake Shack (NYSE: SHAK), citing compelling valuation and growth prospects.
The call followed investor meetings with Shake Shack CEO Rob Lynch and CFO Katie Fogertey at the company’s new unit and support center at The Battery development in Atlanta.
The firm said the recent pullback in shares created an attractive entry point. Analysts pointed to multiple drivers, including sustained comparable sales growth, margin expansion from new processes and equipment, accelerating unit growth—currently about 360 U.S. locations versus a total addressable market of 1,500—and continued international licensing opportunities.
Shake Shack was projected to deliver mid-teens annual unit growth over the next several years. At the same time, the stock’s EV/EBITDA multiple in the high teens was viewed as attractive, sitting at the low end of its historical 18x–30x range and below Raymond James’ DCF-based fair value estimate of $160.
