Loop Capital upgraded Shake Shack Inc. (NYSE: SHAK) from Hold to Buy and raised its price target to $127 from $98, sending shares up more than 1% in intra-day trading Friday.

The firm said it viewed the selloff in Shake Shack shares—down more than 30% since July—as an attractive buying opportunity, arguing that investor concerns about slowing comparable sales in October were overstated.

Loop Capital said the upgrade reflected the company's strong fundamentals, including unit growth in the low double-digit to mid-teen range, industry-leading store-level returns, and expectations for stable to modestly positive same-store sales over the next 12 to 18 months.

The new price target implies roughly 23x the firm's 2026 EV/EBITDA estimate, which it said was justified given Shake Shack's growth trajectory and profitability outlook.