Shake Shack (SHAK) stock on Tuesday saw a whole lot of shaking going on after the burger chain was upgraded by Goldman Sachs and Wedbush.
Shares of the New York company at last check were 6.2% higher at $89.85.
Goldman analyst Jared Garber upgraded Shake Shack to buy from neutral and raised his price target to $109 from $107.
Wedbush analyst Nick Setyan upgraded the chain to outperform from neutral and raised his price target to $118 from $114.
"[Shake Shack] represents one of the last true reopening stories in the restaurant industry," Garber said in a research note.
"Food players were generally able to recover quickly from the initial shock of COVID to regain momentum last summer. SHAK, on the other hand, continues to be pressured by its large urban footprint with commuting routines and tourism still depressed."
Garber, who also downgraded Domino's Pizza (DPZ) to neutral from buy, said these dynamics are driving a more prolonged recovery for the Shake Shack brand.
"[The] pullback provides buying opportunity for a long-term growth story as the company has a strong balance sheet to drive its unit-development strategy and invest in digital/technology initiatives and new store asset designs," he said.
Earlier this month Shake Shack reported first-quarter revenue and earnings before interest, taxes, depreciation and amortization that lagged analyst forecasts.
Setyan said he viewed the company's "post-Q1 swoon as overdone."
"Our analysis of the near-term impact from SHAK's urban exposure alleviates our concern that the business is impaired in the medium- to longer-term," he said.
"As a post-COVID normalization takes place across the system, we expect new-unit volumes to resume their historical roll of driving top-line upside relative to management guidance and consensus estimates."
In January, Shake Shack beat Wall Street's fourth-quarter earnings expectations.
In that same month, Shake Shack introduced its Korean-Style Fried Chick'n and Korean Gochujang Chick'n Bites - Fries at all U.S. locations.
At last check Domino's Pizza shares were trading off 0.6% at $418.40.