Shake Shack (NYSE:SHAK) was raised to Buy at Northcoast Research in a note on Friday, with a price target of $85 per share.
Northcoast analysts said that the company's dine-in traffic continues to strengthen, and they believe the company is well-positioned.
"We are raising Shake Shack to BUY to reflect our more bullish outlook on the brand's fundamentals," they wrote. "Based on our recent checks and review of our NCR foot traffic index, we believe traffic has increased, in-store, relative to the prior quarter."
In addition, the firm believes stronger commuter traffic over the summer is helping to drive the traffic trend, and Northcoast expects it to continue this fall as more employees return to traditional commuting patterns.
"We believe Shake Shack is well positioned to drive industry-leading, double-digit unit growth for years as development opportunities remain robust globally, in the US, Canada, Europe and Asia," the analysts added. "We believe Shake Shack is trading below its fair value."