Loop Capital Downgrades Shake Shack to Hold, Raises PT to $127.

Loop Capital Downgrades Shake Shack to Hold, Raises PT to $127.

Loop Capital has downgraded Shake Shack (SHAK) to Hold from Buy, while raising the price target to $127. The stock recently surpassed Loop's previous target after surging approximately 60% over the last couple of months. Despite the strong performance, Loop remains positive on Shake Shack's near and long-term story but notes that the current valuation accurately reflects the company's attractive fundamentals [2].

The analyst suggests that Loop would turn more constructive on the shares in the event of a "material pullback." This move follows a series of analyst ratings from other firms, including Truist Securities, which raised its price target to $150.00 on Wednesday, maintaining a Buy rating [1].

Shake Shack's stock has been performing well, delivering a 62% return over the past year and trading near its 52-week high of $141.06. However, the company missed its second-quarter 2025 guidance for new store openings, opening 13 stores versus its guidance of 14-15 locations. Despite this, Truist noted that job postings data suggests limited risk to Shake Shack’s full-year 2025 development guidance, indicating the company remains on track with its broader expansion plans [1].

Shake Shack has also announced plans to open 12 outlets in Panama by 2035 through a partnership with Grupo Attie-Multifood Enterprises, marking the company’s entry into Central America. This strategic move is part of Shake Shack’s broader global expansion efforts [1].

Despite mixed analyst ratings, Shake Shack continues to explore new markets and opportunities for growth. Wells Fargo has raised Shake Shack’s price target to $115, maintaining an Equal Weight rating, while BTIG downgraded Shake Shack’s stock to Neutral due to concerns about guest frequency and strategic initiatives. KeyBanc Capital Markets initiated coverage with a Sector Weight rating, acknowledging growth potential but noting difficulties in driving traffic growth. TD Cowen downgraded Shake Shack’s stock rating to Hold, citing high valuation and competitive pressures in the burger segment [1].

References:
[1] https://www.investing.com/news/analyst-ratings/truist-securities-raises-shake-shack-stock-price-target-to-150-on-easing-macro-concerns-93CH-4121283
[2] https://www.tipranks.com/news/the-fly/shake-shack-cut-to-hold-at-loop-capital-on-valuation-thefly