NEW YORK (TheStreet) -- Shake Shack (SHAK) - Get Report stock is climbing by 3.44% to $36.09 in afternoon trading on Wednesday, following a ratings upgrade to "buy" from "neutral" at Longbow Research.

The firm has a $46 price target on shares.

Shake Shack is benefiting from its "impressive new store growth performance" beyond Manhattan and the introduction of a chicken sandwich to its menu, Longbow contends, Fortune reports.

The company's new Chick'n Shack sandwich has tested as a top-five seller in locations where it's offered, as consumers look for alternatives to hamburgers and milkshakes, which are perceived as less healthy, the firm explained. 

"What they're saying, basically, is that this company is a great growth company," TheStreet's Jim Cramer says of the upgrade in the above video.

He notes that Shake Shack is similar to electric vehicles manufacturer Tesla (TSLA)in that Tesla is too expensive per car, whereas Shake Shack is too expensive per store.

Even so, "I've always felt that at a certain point Shake Shack will grow into its market cap," Cramer adds.

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

Shake Shack's weaknesses include its poor profit margins.

You can view the full analysis from the report here: SHAK

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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