UBS Raises Price Target on Chipotle Mexican Grill (CMG); Spicy Sales

UBS maintains a 'Neutral' on Chipotle Mexican Grill (NYSE: CMG) price target raised from $345 to $365.

UBS analyst says, "Following 4Q results, we are raising our PT and our 1Q same store sales (SSS) growth estimate from 8% to 9% to reflect ongoing sales momentum. Although 4Q EPS missed expectations, restaurant margins were largely in line with our forecasts. Higher than expected corporate overhead caused the majority of the EPS miss...We are maintaining our above consensus 2012 and 2013 EPS estimates of $8.85 (+30% YOY) and $11.06 (+26% YOY)."

"We continue to believe that the near-term risk to CMG is to the upside due to solid sales momentum and a potential margin rebound in 2012. At this time, we prefer to wait for a significant pullback in valuation or a meaningful change in fundamentals before moving off the sidelines."

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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