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Vetr Crowd Upgrades Shake Shack To 4.5 Stars

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  • Shares of Shake Shack Inc (NYSE: SHAK) have fallen around 45 percent over the past six months.
  • The Vetr crowd upgraded their rating on the popular burger chain to 4.5 stars out of a possible five stars.
  • Eighty-three percent of the crowd's ratings are bullish and the crowd-sourced price target of $44.75 indicates a potential upside of nearly 17 percent.

Shares of Shake Shack appear on track to end 2015 on a negative note. The stock has lost nearly 10 percent over the past month, 27 percent over the past three months and around 45 percent over the past six months.

Nevertheless, the Vetr crowd appears to be taking advantage of recent weakness and upgraded their rating on Shake Shack's stock to 4.5 stars out of a possible five stars. The stock has risen to $38.54 since the previous rating of four stars was issued just eight days ago.

Related Link: Vetr Crowd Upgrades Shake Shack, 66% Of Users Are Bullish

Meanwhile, 83 percent of the crowd's ratings are bullish and the crowd-sourced price target of $44.75 implies a potential upside just shy of 17 percent.

Mikhail Skiba, a member of the crowd, offered a contrarian view and commented that Shake Shack's valuations are "very high" when factoring in the company's "slowing sales and income of about $5 million per year."

Shake Shack Versus Traditional Fast Food Burger Peers

While Shake Shack operates in the more upscale "fast casual" category with its "premium" burgers, the company is at its core a seller of burgers.

The Vetr crowd appears to favor Shake Shack among burger sellers as it rates McDonald's Corporation (NYSE: MCD) just three stars and the crowd-sourced price target of $119.06 implies an upside of less than 3 percent.

The thesis gains further conviction when considering the Vetr crowd rates Wendys Co (NASDAQ: WEN) stock with a 3.5-star rating while the crowd-sourced price target of $11.02 implies an upside of just 5 percent.

Latest Ratings for SHAK

DateFirmActionFromTo
Feb 2022JP MorganMaintainsUnderweight
Feb 2022Credit SuisseMaintainsNeutral
Feb 2022Deutsche BankMaintainsHold

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Posted-In: Burgers Casual Fast Food Fast FoodAnalyst Color Downgrades Crowdsourcing Analyst Ratings General

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