On Tuesday, shares of fast-casual burger chain Shake Shack Inc SHAK are climbing over 6% in mid-morning trading after investment firm William Blair upgraded the company to an 'Outperform' rating from 'Market Perform.'
According to William Blair analyst Sharon Zackfia, Shake Shack will experience "significant" upside to current 2016 revenue and EPS estimates as momentum increases for the restaurant. She also expects strong earnings growth and "more palatable valuation" after the company's recent pullback in shares, and notes that "the company's premium is low relative to its peers."
This upgrade also comes after Shake Shack recently added chicken sandwiches to its menus all over the United States, a move that could help boost the company even more.
Check out SHAK's performance over the last year: