Shake Shack initiated with a Hold at Deutsche Bank

Deutsche Bank initiated coverage of Shake Shack with a Hold rating and $62 price target. While While the firm believes there is upside to numbers on restaurant margin expectations, there is risk to SSS as price moderates, mix continues to run negative and traffic is somewhat elusive given the industry backdrop and cannibalization headwinds, the analyst tells investors in a research note. Deutsche Bank expects Shake Shack to sustain double-digit unit growth over the next several years, and it has opportunity to exceed its current 450 company unit target.