Goldman Sachs is Bullish on Shake Shack

Shake Shake could see an 80% rally from current levels according to Goldman Sachs.

The firm believes that Shake Shack’s exclusive partnership with Grubhub will ultimately be good for the fast-food chain, and sees the restaurant’s stock rallying 80% from here.

Goldman has a buy rating on Shake Shack with a price target of $115 per share. The fast-food company closed at $64.10 a share on Tuesday.

Goldman Sachs analyst Katherine Fogertey said in a note to clients on Tuesday, Management “commentary around the Grubhub migration was positive, as they indicated they completed the [positive] integration with GRUB.” Goldman had a meeting with Shake Shack management.

Goldman ultimately sees the company’s exclusive partnership with Grubhub as a positive for Shake Shack.

“As part of the partnership, GRUB has provided SHAK with detailed customer data, as well as marketing resources such as loyalty and targeted promotions,” said the analyst.

Disclaimer: We have no position in Shake Shack Inc. (NYSE: SHAK) and have not been compensated for this article.