Analyst Update: AIG, Sonic Corp, Shake Shack Inc

Analysts adjusted their ratings and price targets on American International Group Inc (NYSE:AIG), Sonic Corporation (NASDAQ:SONC), and Shake Shack Inc (NYSE:SHAK)

Josh Selway

Mar 30, 2016 at 2:24 PM

Analysts are weighing in on insurance stock American International Group Inc (NYSE:AIG), fast-food concern Sonic Corporation (NASDAQ:SONC), and burger joint Shake Shack Inc (NYSE:SHAK). Here's a quick roundup of today's brokerage notes on AIG, SONC, and SHAK.

AIG is one of several insurance stocks storming higher today after a major court decision. Also lifting the shares -- which are up 1.8% at $54.38 -- is an upgrade to "buy" at Janney. Still, over half the analysts that cover American International Group Inc rate it just a "hold." The stock's lackluster technical performance may have something to do with this skepticism. For example, AIG has given back over 12% year-to-date -- though it's now on pace to close above its 60-day moving average for the first time this year.

SONC jumped to an annual high of $34.50 earlier and was last seen up 4.9% at $34.14, after the company's fiscal second-quarter earnings and full-year outlook both topped expectations. The analyst community has been upping its opinion in response. Specifically, UBS, Jefferies, Stephens, and Sterne Agee CRT all raised their price targets, with the latter setting its price target at $40 -- all-time-high territory. We'll now have to see if some Sonic Corporation short sellers jump ship. That's because SONC's short-interest ratio comes in at a lofty 6.60.

Longbow Research expressed its confidence in SHAK's nationwide growth story, raising its opinion on the stock to "buy" from "neutral." In its note, the brokerage firm pointed to the strong performance of the company's new stores outside of Manhattan. The shares are now up 3.7% at $36.19, but remain 8.6% lower in 2016. In the options pits, call buying has been hot on Shake Shack Inc. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows more than three long calls have been initiated for every long put during the past two weeks.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Apple Inc., Intercept Pharmaceuticals Inc, and ACADIA Pharmaceuticals Inc. and Analyst Downgrades: Restoration Hardware Holdings Inc, Dave & Buster's Entertainment, Inc., and TerraForm Power Inc.

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