Why Shake Shack Stock Jumped Today

Shake Shack (NYSE: SHAK) rose 4.5% on Tuesday after two separate analyst teams upgraded its stock.

Goldman Sachs analyst Jared Garber lifted his rating on Shake Shack from neutral to buy. He sees the restaurant stock rising to $109 per share, or about 23% higher than its current price near $88.

Garber believes the stock's sharp decline following its first-quarter earnings report earlier this month is presenting investors with a chance to pick up shares at an attractive discount. Although he cautions that sales at Shake Shack's urban locations could face short-term coronavirus-related challenges, Garber argues that the company's long-term expansion strategy remains intact.

Source Fool.com