Chipotle Mexican Grill (CMG) PT, Estimates Lowered at Nomura Amid Weak Q2

Nomura Securities analyst Mark Kalinowski reiterated a Neutral rating and lowered its price target on Chipotle Mexican Grill (NYSE: CMG) to $405.00 (from $420.00) following a weak Q2, as expected.

Kalinowski commented, "After Thursday's market close, Chipotle Mexican Grill (CMG; Neutral) reported Q2 EPS of $0.87, falling short of our $1.00 forecast and the $0.91 Consensus Metrix number. Second-quarter same-store sales fell by -23.6%, worse than our -20.5% forecast and consensus of -20.6%. On the plus side, management notes that "we are pleased to see July sales comp trends have already improved by 200 to 300 basis points, and transaction comp trends have improved by an even greater amount." Nevertheless, July same-store sales so far are down by about -21%. As of this writing, CMG shares are down by roughly -2% in Thursday's aftermarket (although the stock has been gyrating quite a bit in that aftermarket). We lower our target price by $15 to $405 (~37x our 2017E EPS)."

FY16E EPS from $4.68 to $4.00; FY17E EPS from $11.75 to $11.00.

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 $418.07 yesterday.

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