Shake Shack (SHAK): Reiterating Buy But Cutting PT - Buckingham

Buckingham Research analyst, John Zolidis, reiterated his Buy rating on shares of Shake Shack (NYSE: SHAK) but cut his price target to $40 from $45.

SHAK is one of the analyst's favorite early stage growth companies combining a long runway for growth (~60 company-operated locations going to 450) with some of the best unit level economics in the industry (the analyst estimates the average Shack’s annual ROIC at ~36%).

The analyst believes SHAK’s exceptional returns are a function of strong AUVs in marquee locations reflecting the good value product offering, attractive store environment and strong brand.

The analyst's $40 PT is based on 21x (28x prior) FY'18 EV/EBITDA (representing a 30% discount to the stock's historical average since coming public in Jan. 2015).

For an analyst ratings summary and ratings history on Shake Shack click here. For more ratings news on Shake Shack click here.

Shares of Shake Shack closed at $32.83 yesterday.

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