Shake Shack shares opened for trade on January 30.

On Tuesday, Wall Street firms started rolling out their ratings on the burger chain, and Goldman Sachs started the company with a Neutral rating and a $36 price target. 

"We are initiating coverage of Shake Shack Inc. (SHAK) with a Neutral rating and see 13% downside to our $36, 12-month price target (vs. average downside of 0.3% for our coverage universe)," Goldman writes. "Millennial relevancy, growing awareness outside of existing markets, and strong unit economics are all supportive of a significant runway for growth (only at 7% of its estimated US potential)."

Here are Goldman's main drivers of growth for the company:

Shake Shack is only at 7% of its estimated 450-store US capacity. Millennials love Shake Shack. The company's pricing is strong against its peers.  Growing Google searches in untapped markets is a positive indicator for growth potential.  New stores offer a cash return of 32%, comparing favorably to peers.  The brand is still in early stages of growth. 

So, in short, Goldman thinks Shake Shack is a great company, but an expensive stock. 

On Tuesday morning in pre-market trade, Shake Shack shares were little changed at $41.75.

See Also:

GOLDMAN: Sell BoeingGoldman hacks its Q1 GDP forecast because of the weatherGOLDMAN: There's no clear reason for the big stock markets moves in the last 6 months

SEE ALSO: Shack Shake won't be the next Chipotle