Shake Shack’s  (SHAK) – Get Report comparable-sales numbers are turning around, Loop Capital analyst Lynne Collier says, initiating coverage of the burger chain at buy with a $78 share-price target.

The New York company’s comparable sales have hit bottom and a “brand transformation” has begun, the analyst said, according to The Fly.

Shake Shack has done well in curbside and digital sales, which should trigger “outsized” sales comparison in the intermediate term, she said. 

Worries about the company’s urban focus at a time when people are fleeing to the suburbs to escape the coronavirus have been priced into the stock, Collier said.

Shake Shack’s same-store sales plunged 49% in the quarter ended June 24 from a year earlier amid the coronavirus pandemic and civil-rights protests that reduced the restaurants’ operating hours.

The drop was “driven by a decline in traffic of 60.1% and an increase in price mix of 11.1%,” Shake Shack said in a statement. 

“Same-Shack sales improved during the quarter, delivering 64%, 42% and 42% declines for fiscal periods April, May and June, respectively.”

The company opened four new company-operated Shacks, in Sacramento, Calif., Los Angeles, Charlotte and St. Louis, in the latest quarter. Each of them “opened with encouraging levels of sales,” Shake Shack said.

Revenue totaled $91.8 million for the latest quarter.

On a day when the market is indicated sharply lower, Shake Shack’s shares recently traded unchanged at $64.87. The stock has jumped 22% over the past three months through Thursday, compared with a 9% gain for the S&P 500.

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a blue car parked in a parking lot: Nio

© Nio

  • Deutsche Bank lifted its profit and sales forecasts for Chinese electric car manufacturer Nio on Tuesday, citing the company’s promising move into the premium autos sector.
  • In a note probing whether Nio can be “the next iconic auto brand,” analysts led by Edison Yu cited growing favorability in the expanding Chinese market.
  • One recent study found Nio boasts higher odds of customer referral in the country than Tesla, BMW, and Mercedes Benz.
  • Deutsche Bank reiterated its “buy” rating and $24 target price for Nio shares. The target implies a 28% leap from Monday’s closing level over the next 12 months.
  • Watch Nio trade live here. 

Nio may not have the intense following enjoyed by industry leader Tesla, but Deutsche Bank thinks the electric car manufacturer can quickly dominate the expanding Chinese market.


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In a Tuesday note delving into whether the company can become “the next iconic auto brand,” analysts led by Edison Yu highlighted Nio’s growth in the competitive electric-vehicle market. For one, sales are trending higher. The team projected record third- and fourth-quarter deliveries and raised its estimates for full-year sales and earnings.

“As [battery-powered electric vehicle] adoption increases and word of mouth spreads, we believe Nio can take material share in the premium segment as consumers begin to understand the value proposition and quality of its products and services,” Deutsche Bank said.

Read more: JPMORGAN: The best defenses against stock-market crashes are delivering their weakest results in a decade. Here are 3 ways to adjust your portfolio for this predicament.

The lifted forecast backs the firm’s “buy” rating and $24 price target for Nio shares. That target implies a 28% rally from Nio’s Monday closing level over the next 12 months.

Nio gained as much as 7% following the note’s release.

Some investors