Goldman Sachs Adds Chipotle Mexican Grill (CMG) to Conviction Buy List

Goldman Sachs added Chipotle Mexican Grill (NYSE: CMG) to its Conviction Buy with a price target of $410 (up from $390).

The firm expects 35-40% EPS growth in 2012, or $9.39 in EPS, well ahead of the consensus of $8.63. They expects upside to both SSS and profit margins, as lower food work their way through.

Goldman sees low likelihood of multiple compression given: (1) CMG's early stage in its growth life cycle at 1,200 units out of a 3,000-4,000 unit potential, (2) the magnitude of potential EPS upside, and (3) the historical precedent set by prior "hyper-growth" restaurant stocks.

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 $341.27 yesterday.

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