Piper Jaffray Slashes Numbers on Chipotle (CMG) But Keeps 'Overweight' Rating
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Piper Jaffray analyst Nicole Miller Regan lowered estimates and her price target on Chipotle Mexican Grill (NYSE: CMG) to $483.00 (from $590.00) but maintained a Overweight rating. The adjustments brings the firm more in-line with the Street.
Regan commented, "We reiterate our confidence in the company's ultimate brand recovery efforts and believe meaningful leverage exists "when" (not "if") trends improve. That said, we are taking this opportunity to adjust our estimates to better reflect the reality and scope of the work to be accomplished. We expect more even results to materialize as the company leverages its latest marketing and technology investments and believe a “clean” month/quarter is still required to create a full basing of negative (but stabilizing trends). We point to recent indications of investors building positions in the stock as a reason to keep CMG shares top of mind. We maintain our Overweight rating and are adjusting our PT to $483 ($590 prior) based on 20x our FY18E EV/EBITDA, discounted back at 10%."
The firm cut FY 2016 EPS from $4.39 to $3.58 and FY 2017 EPS from $13.62 to $9.26.
Shares of Chipotle Mexican Grill closed at $438.45 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Hot Comments
Related EntitiesPiper Jaffray, Nicole Miller Regan
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