Nicole Miller Regan, a senior research analyst at Piper Sandler, raised the price target for Chipotle Mexican Grill (NYSE: CMG) to $1,745.00 from the prior $1,514.00 and maintained the “Overweight” rating on the stock in today’s note sent to clients.

The updated price target comes after holding a discussion with Ms. Nicole West, Chipotle's Vice President of Digital Strategy & Product Management.

“Meeting additional leaders within the firm increases our level of confidence that the company has both the human capital and technological tools to carry out its long-term growth strategy. On a separate (but related) topic, we are also raising our 4Q20 same-store sales estimate to +6% (vs. +5% prior) alongside our latest round of channel checks for October and early November that highlight steady comp trends in the low-+HSD% range driven in part by the return of Carne Asada, an ongoing focus on the digital channel, and sustained off-premise sales,” Miller Regan writes.

The company’s infrastructure is well-positioned to continue executing in the future, which is perfectly demonstrated by the success that Chipotle’s mobile app has recorded.

“The company's mobile app (with over 17+ million members currently) is an excellent case study of Chipotle's commitment to technology and ability to increase access and convenience through innovative channels and features such as delivery, group ordering, and the growing Chipotlane format,” the analyst adds.

Sales estimates are raised after checks showed positive trends.

“Our checks highlight steady trends in the low-HSD% range across October and November with trends driven in part by operational momentum following the return of Carne Asada, a strong focus on the digital channel, and sustained off-premise sales.”

Overall, analysts at Piper have confidence in the ability for the “brand to return to (and then ultimately surpass) prior peak AUVs, store-level margins and pace of global development.”

“We believe our now higher multiple is reasonable as it reflects our increased confidence in the company's best-in-class human capital,” concludes Miller Regan.