Nomura Securities Starts Chipotle Mexican Grill (CMG) at Neutral

Nomura Securities initiates coverage on Chipotle Mexican Grill (NYSE: CMG) with a Neutral rating and a price target of $420.00.

Analyst Mark Kalinowski commented, "We initiate coverage of Chipotle Mexican Grill (CMG) - owner of fast-casual concepts, including its namesake brand, which is the second-largest fast-casual restaurant concept in the United States in terms of domestic systemwide sales - with a Neutral rating. Positives and opportunities include differentiated brand positioning (“the gourmet restaurant where you eat with your hands”), the likelihood of market share gains for years to come, and potential increases in mobile and online ordering. Risks include low visibility into sales recovery, the potential for further food sourcing and safety issues, the ongoing battle of results versus Street expectations, rising labor costs, and valuation. Our EPS estimates for 2016 and 2017 of $7.90 and $14.00, respectively, are $0.43 and $0.53 below current sell-side consensus (Consensus Metrix) forecasts. Our five-year annualized EPS growth projection is 18%."

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 $514.01 yesterday.

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