Shake Shack Inc.(SHAK:NYE) Barclays lowers the target price to $46

STA Research
by: STA Research

Barclays maintains Shake Shack Inc. with an Equal Weight rating and lowers the target price to $46 from $57 on the company’s stock.

Based on the Shake Shack Inc stock forecasts from 12 analysts, the average analyst target price for Shake Shack Inc is USD 79.15 over the next 12 months. Shake Shack Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Shake Shack Inc is Slightly Bearish, which is based on 3 positive signals and 7 negative signals. At the last closing, Shake Shack Inc’s stock price was USD 47.17Shake Shack Inc’s stock price has changed by +0.21% over the past week, -13.77% over the past month and -53.13% over the last year.

What we like:

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

 

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