RBC Capital Upgrades Chipotle Mexican Grill (CMG) to Outperform

RBC Capital analyst David Palmer upgraded Chipotle Mexican Grill (NYSE: CMG) from Sector Perform to Outperform with a price target of $510.00 (from $450.00).

The analyst comments "While 3Q results (reported 10/25) are likely to be lackluster, we are now modeling a ramp up in SSS growth from 4% to 6% through 2H19. As a result of slightly higher SSS growth, we increase our 2020 EPS estimates—implying 31% CAGR through 2021 and mid-teens EPS growth thereafter. Our survey work demonstrates significant upside from menu and digital/delivery opportunities—and we believe this management team will increasingly execute against these in 2019. We believe the recent pullback has created an acceptable entry point (at 28x 2020e EPS)."

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 $428.54 yesterday.

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