Chipotle Mexican Grill (CMG) PT Lowered to $60 at KeyBanc

KeyBanc analyst Eric Gonzalez lowered the price target on Chipotle Mexican Grill (NYSE: CMG) to $60.00 (from $64.00) while maintaining an Overweight rating.

The analyst commented: "We see opportunity for OW-rated Chipotle as valuation approaches a historical trough, but we acknowledge the catalyst path has become more challenging in the 2H, and we are thus reducing our PT to $60 (vs. $64 prior).

Chipotle feels out of favor among hedge funds. Investors have been less enthusiastic about OW-rated Chipotle as the setup into the second half is difficult with Honey Chicken likely proving to be less incremental than initially expected. Based on our Key First Look Data, we are lowering our 1Q25 and 2Q25 SSS growth estimates to 1.0% and 1.5%, respectively. While trends likely improved in late March/early April, much of this may be the result of Easter shifting into 2Q (Chipotle is closed on Easter Sunday), which will impact trends later this month. But with its valuation approaching the low point of its historical range, we continue to recommend the stock over the next year as its core product continues to offer significant value relative to its peers."

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