Chipotle Mexican (CMG) PT Lifted to $740 at Piper Jaffray; Q2 Results 'Strong'
Piper Jaffray analyst Nicole Miller Regan reiterated an Overweight rating and boosted her price target on Chipotle Mexican Grill (NYSE: CMG) to $740.00 (from $700.00) following Q2 results. The analyst said the results were strong on an absolute and relative basis.
Regan commented, "Chipotle reported 2Q15 results that were strong on an absolute and relative basis, including same-store sales of +4.3% (vs. consensus expectations of +5.9%) and EPS of $4.45 (in-line with expectations). Same-store sales were driven by average check, including 4.0% price. To date in 3Q, we understand sales and traffic trends to be running in the +LSD range which we believe will help support shares during tomorrow's trading session given recent concerns over having to lap 3Q14's record +19.8% same-store sales result. We maintain our OW rating and positive long-term view on CMG shares as it relates a track record of industry-leading profitability and believe the company's dedication to human capital supports a best-in-class growth profile. We are raising our PT to $740 based on 20x FY16 EBITDA (vs. $700 prior based on 22x FY15 EBITDA) and note this now lower multiple is a function of an increased time horizon."
FY 2015 EPS goes from $16.90 to $17.21.
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 $673.07 yesterday.