- Piper Jaffray initiates coverage on Shake Shack with an overweight rating, predicting significantly higher earnings in the coming years.
- The firm starts its price target for Shake Shack at $44, representing 19 percent upside from Tuesday's close.
Investors should buy Shake Shack shares because it will generate significantly higher earnings in the coming years due to its store expansion plans, according to Piper Jaffray, which initiated coverage on the restaurant chain with an overweight rating.
"We believe Shake Shack presents a highly-compelling, growth-restaurant investment opportunity," analyst Nicole Miller Regan wrote in a note to clients Wednesday. "With the company's culture of operational excellence we believe the brand is favorably positioned to double its unit base during the next five-year period."