Shake Shack's Agreement With Activist Investor Alleviates Concern, Says Analyst
Portfolio Pulse from Priya Nigam
Shake Shack (NYSE:SHAK) shares spiked after the company signed a cooperation agreement with activist shareholder Engaged Capital, LLC. Morgan Stanley analyst Brian Harbour upgraded the stock from Underweight to Equal-Weight and raised the price target from $52 to $63.
May 19, 2023 | 3:09 pm
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Shake Shack's cooperation agreement with Engaged Capital may lead to operational and cost changes, fostering greater accountability. Morgan Stanley upgraded the stock and raised the price target.
The cooperation agreement with Engaged Capital addresses Shake Shack's fundamental concerns related to operations and profit visibility. This has led to an upgrade in the stock rating by Morgan Stanley and an increase in the price target, which is likely to have a positive short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100