UBS Dices Chipotle Mexican Grill (CMG): Shares Should Stabilize Around $350

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UBS maintains a 'Neutral' on Chipotle Mexican Grill (NYSE: CMG) price target of $355.00 (from $443.00).

Analyst, David Palmer, said, "Following 2Q results, we are tweaking our 2012 estimate EPS to $9.07 (+33% YOY)(from $9.13) and lowering our 2013 estimate EPS from $11.61 to $10.97 (+21% YOY) and our price target to $355. Our 2012 estimate EPS reflects our view that slower same store sales (SSS) growth in 2H12 (UBS estimate 5%) will be partially offset by food and other margin relief. However, our lower 2013 EPS estimate assumes that moderating SSS growth will be met with re-accelerating food inflation."

Palmer also explains that there could be new store productivity issues, citing the rising gap between Average Unit Volume (AUV) growth and same-store sales growth.

For an analyst ratings summary and ratings history on Chipotle Mexican Grill click here. For more ratings news on Chipotle Mexican Grill click here.

Shares of Chipotle Mexican Grill closed at $403.86 yesterday, with a 52 week range of $271.53-$442.40.

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