Credit Suisse Downgrades Chipotle Mexican Grill (CMG) to Neutral; 'New Normal'
- Wall Street set to open flat as investors test rally
- Western Digital (WDC) Raises Q2 Outlook
- Biotech, Pharma Stocks Weaker Amid Trump Comments on Lower Drug Prices
- Oil slips on doubts output cut will end global glut
- Pre-Open Stock Movers 12/07: (EMKR) (PLAY) (WDC) Higher; (SIGM) (AVAV) (BLUE) Lower (more...)
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Credit Suisse downgraded Chipotle Mexican Grill (NYSE: CMG) from Outperform to Neutral with a price target of $375.00 (from $500.00) citing a 'new normal' following disappointing results.
Analyst Jason West commented, "CMG posted another disappointing result as the sales recovery continues to take longer than expected. 3Q same store sales (SSS) were -22% vs. CS/cons. -18% (per Consensus Metrix). Trends barely budged from 2Q16 (-24%) despite ~200bps easier compare and rollout of an aggressive (temporary) loyalty program during 3Q. GAAP EPS was 27c (incl. ~52c one-time items) vs. CS/cons. $1.24/$1.63. Restaurant margins of 14.1% missed CSe by 310bps on lower SSS, loyalty program costs, higher marketing/promo spend, and higher avocado costs."
The firm's 2016/2017 EPS moves to $1.14/$8.82 from $2.51/$10.49. 4Q16E SSS falls to -3.5% from 0%. 2017 forecast now embeds +9% SSS (from +11%).
Shares of Chipotle Mexican Grill closed at $405.67 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Instinet Cuts Chipotle Mexican Grill (CMG) PT to $333
- Credit Suisse Downgrades NetApp (NTAP) to Underperform
- Cowen Downgrades Nike (NKE) to Neutral; Sees Lower Guidance
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Downgrades
Related EntitiesCredit Suisse
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!