Shake Shack jumps 11% as Goldman Sachs calls it one of the restaurant industry’s ‘last true reopening stories’ and upgrades to ‘buy’

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Shake Shack jumped as much as 11% on Tuesday after Goldman Sachs upgraded the stock to buy from neutral, with a $109 price target.
The firm called Shake Shack one of the restaurant industry’s "last true reopening stories."
The burger chain had a recent pullback, but analysts say this has created a buying opportunity.
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Shares of Shake Shack jumped as much as 11% after Goldman Sachs called the fast-casual burger chain one of the "last true reopening stories" in the restaurant industry and upgraded the stock to buy from neutral.
The bank in a note on Tuesday gave Shake Shack a $109 price target, implying 29% upside from Monday’s close.
"The company’s small size and unique footprint drive a lag in the company’s recovery from COVID, making it one of the last reopening plays in the space," the analysts, led by Jared Garber, said in the note.
While the burger chain had a recent pullback after the company reported first-quarter earnings that missed expectations, the analysts said this actually created a buying opportunity.
They noted that Shake Shack currently has five times more cash on its balance sheet than the company’s historical average, which it could use to accelerate its ongoing expansion and push into digital technology. Further, Goldman cited recovering travel and mobility trends in Shake Shack’s key urban environments.
"[Shake Shack’s] long-term story remains robust despite near-term challenges due to the brand’s primarily urban/tourism-based footprint," they said.
Read the original article on Business Insider

Source: https://www.businessinsider.com/shake-shack-stock-price-goldman-sachs-buy-upgrade-true-reopening-2021-5

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