Goldman Sachs Raises Price Target On Chipotle Mexican Grill (CMG), Keeps Top Rating

Goldman Sachs raised its price target on Chipotle Mexican Grill (NYSE: CMG) from $410 to $425 and reiterated their Conviction Buy List rating following Q4 results after the close.

The firm said the see the quarterly results as "exceptionally strong" and see meaningful EPS upside in 2012.

Goldman raised 2012 revenue forecast to $2.8 billion to reflect "strong traffic trends, an incremental price increase in the Pacific Northwest, and a more even quarterly spread of new unit openings." They see 2012 SSS of 9.4%, which is above the consensus of 7.2%.

They also see 75-100 bp of restaurant margin expansion as a result of lower food costs and also forecast continued fixed cost leverage from the higher sales. Specifically, Goldman sees the potential for 17.4% operating margins in 2012 and 20%+ by 2015.

The firm raised their Street high 2012-2013 estimates to $9.45-$12.27 from $9.38- $12.26 to reflect higher revenues offset by moderately higher investment spend.

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 $370.41 yesterday.

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