It May Not Be Long Before Optimistic Scenarios For Shake Shack Begin To Seem Less Likely
Going by expectations for near- and medium-term results, Wedbush said in a note the likelihood of more optimistic scenarios for Shake Shack Inc (NYSE: SHAK) decrease, as current valuation implies an opportunity well above its base case scenario and the management guidance.
The firm expects earnings per share of $0.16 per share on revenues of $68.8 million for the third quarter. This compares to the consensus, which calls for earnings of $0.14 per share and revenues of $69.1 million.
The results are expected in the week of October 31.
The firm believes same-store sales growth headwinds may intensify going forward and that new unit upside is less likely in 2017 and beyond.
Wedbush maintains its Underperform rating on the shares of Shake Shack and lowered its price target to $28 from $39 on lower peer valuations.
At the time of writing, shares of Shake Shack were up 1.06 percent at $32.55.
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Latest Ratings for SHAK
|Aug 2016||JP Morgan||Maintains||Neutral|
|Aug 2016||SunTrust Robinson Humphrey||Upgrades||Neutral||Buy|
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