Longbow Research has reiterated Shake Shack Inc. (SHAK) as a buy and set a 12-month price target of $54, compared to its trading range of over $36 per share.
The $54 price target is based on 32 times 2017E EV/EBITDA. Its current price is 22.2 times the forward earnings, compared with the historical 10-11 times for restaurant peers.
“While still not cheap compared to the company’s publicly-traded restaurant peer average, we believe SHAK’s current valuation represents an attractive entry point for an emerging concept with substantial long-term store growth upside, significant...
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