Shake Shack upgraded to Outperform with $87 target at Raymond James

Raymond James upgraded Shake Shack to Outperform from Market Perform with an $87 price target post the Q2 report. The firm sees the company’s annual unit growth of more than 20% creating significant shareholder value should its margins and returns improve. Shake Shack reported “very strong” store margins in Q2, driven by improved labor management and early progress on optimizing the new unit prototype, the analyst tells investors in a research note.