Deutsche Bank Raises Price Target and Estimates on Chipotle Mexican Grill (CMG), Strong Top Line
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Price: $33.50 +2.73%
Rating Summary:
36 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
36 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank is maintaining its Hold rating on shares of Chipotle Mexican Grill (NYSE: CMG) while raising its price target from $300 to $320.
The firm believes that shares may trade down slightly due to the second quarter EPS miss, but notes that the share weakness is likely to be mitigated by the continued strong traffic growth and a more aggressive stance on pricing.
The company released its second quarter results with EPS of $1.64 and total revenue of $572 million. Comps for the quarter came in at 10 percent, beating the firms estimate of 8.2 percent. Total EBIT of $83.9 million was a little light of Deutshe's estimate of $84.2 million.
Deutsche Bank is raising its estimates to reflect higher traffic and menu pricing than previously forecasted. The firm's 2011 and 2012 EPS estimates were increased from $6.69 and $8.23 to $6.87 and $8.60.
An analyst at the firm commented, "Employee turnover increased early in Q2, which is worth keeping an eye on, but does not appear to be a major cost headwind, particularly in this labor market."
For more ratings news on Chipotle Mexican Grill click here and for the rating history of Chipotle Mexican Grill click here.
Shares of Chipotle Mexican Grill closed at $333.71 yesterday.
The firm believes that shares may trade down slightly due to the second quarter EPS miss, but notes that the share weakness is likely to be mitigated by the continued strong traffic growth and a more aggressive stance on pricing.
The company released its second quarter results with EPS of $1.64 and total revenue of $572 million. Comps for the quarter came in at 10 percent, beating the firms estimate of 8.2 percent. Total EBIT of $83.9 million was a little light of Deutshe's estimate of $84.2 million.
Deutsche Bank is raising its estimates to reflect higher traffic and menu pricing than previously forecasted. The firm's 2011 and 2012 EPS estimates were increased from $6.69 and $8.23 to $6.87 and $8.60.
An analyst at the firm commented, "Employee turnover increased early in Q2, which is worth keeping an eye on, but does not appear to be a major cost headwind, particularly in this labor market."
For more ratings news on Chipotle Mexican Grill click here and for the rating history of Chipotle Mexican Grill click here.
Shares of Chipotle Mexican Grill closed at $333.71 yesterday.
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