Shake Shack Under Attack From Wall Street Analysts

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show. Shake Shack Inc SHAK shares were trading lower by $0.50 at $51.72 in Thursday's session. The catalyst for the decline was a downgrade at Goldman Sachs from Neutral to Sell. On Wednesday, the company was downgraded by Morgan Stanley who called it "expensive" and downgraded the issue from Equal-Weight to Underweight and maintained its $38 price target. Shake Shack, which ended Monday's session at $59, reached $50.10 in today's session and has rebounded into the $59.10 area. The issue has not traded under $50 since April 13, when it bottomed at $49.56 on its way to its all-time high. Shake Shack ended its first day of trading (January 30) at $45.90 and dipped to $38.63 on February 17. From that level, it staged a mind-boggling rally that took the issue to $92.86 on May 22. On that same day, Benzinga Pro reported that above $90, each Shake Shak unit was valued at about $50 million. That is compared to a similar calculation for Starbucks store being valued at $36 million per store.