Jefferies Starts Shake Shack (SHAK) at Hold

Jefferies initiates coverage on recent IPO Shake Shack (NYSE: SHAK) with a Hold rating and a price target of $40.00.

Analyst Andy Barish comments, "We think SHAK will grow EBITDA 20%+ as it accelerates unit growth and establishes itself as the premier “fine casual” brand in better burgers. However, with just 31 units today and a domestic runway of at least 450, there is execution risk. SHAK currently trades at the highest valuation in the group, and we’d prefer to let it grow into its multiple over time."

NOTE: Jefferies was a joint bookrunner on SHAK’s $121mm IPO.

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 $41.60 yesterday.

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