Deutsche Bank Lifts Price Target On Chipotle (CMG) to $430 After Meeting
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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 raised its price target earlier on Chipotle Mexican Grill (NYSE: CMG) from $400 to $430 following a meeting with management.
The firm noted the meeting was upbeat on the overall trajectory of the business, in terms of sales, operations and unit growth opportunities. "We picked up some incremental positives that reinforce the unique nature of CMG’s growth story and suggest comps and the earnings multiple could stay elevated for some time," the analyst said.
Key takeaways were: (1) Throughput improvements are expected to drive incremental comps in coming quarters, (2) Even at $2mm AUVs, most stores are not operating near peak capacity, (3) ShopHouse is off to a very promising start and has had no cannibalization impact on a nearby Chipotle, (4) Feedback re: the recent (and first) national TV commercial has exceeded the company’s “wildest dreams”, (5) The labor investigation appears to be winding down, with CMG’s legal team no longer actively spending time on this issue, and (6) CMG has begun to see improved results in some of its historically more challenging “developing” markets, such as Indy and San Antonio.
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 $375.73 yesterday.
The firm noted the meeting was upbeat on the overall trajectory of the business, in terms of sales, operations and unit growth opportunities. "We picked up some incremental positives that reinforce the unique nature of CMG’s growth story and suggest comps and the earnings multiple could stay elevated for some time," the analyst said.
Key takeaways were: (1) Throughput improvements are expected to drive incremental comps in coming quarters, (2) Even at $2mm AUVs, most stores are not operating near peak capacity, (3) ShopHouse is off to a very promising start and has had no cannibalization impact on a nearby Chipotle, (4) Feedback re: the recent (and first) national TV commercial has exceeded the company’s “wildest dreams”, (5) The labor investigation appears to be winding down, with CMG’s legal team no longer actively spending time on this issue, and (6) CMG has begun to see improved results in some of its historically more challenging “developing” markets, such as Indy and San Antonio.
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 $375.73 yesterday.
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