Shake Shack Reaffirmed Strong Buy At Raymond James With $160 Price Target

Group 1 - Raymond James reiterated a Strong Buy rating and a $160 price target on Shake Shack, highlighting compelling valuation and growth prospects [1] - The recent pullback in Shake Shack shares has created an attractive entry point for investors [2] - Analysts noted multiple growth drivers, including sustained comparable sales growth, margin expansion from new processes and equipment, and accelerating unit growth [2] Group 2 - Shake Shack is projected to achieve mid-teens annual unit growth over the next several years, with approximately 360 U.S. locations currently and a total addressable market of 1,500 [2][3] - The stock's EV/EBITDA multiple is in the high teens, considered attractive as it sits at the low end of its historical range of 18x–30x [3] - Raymond James' DCF-based fair value estimate for Shake Shack is $160, indicating potential upside [3]