Mizuho analyst Nick Setyan upgraded Chipotle Mexican Grill (NYSE: CMG) from Neutral to Outperform with a price target of $40.00 (from $37.00).

The analyst comments: "We see a comp inflection near-term along with incremental margin visibility, with Q1 earnings/Q2-to-date commentary a potential positive catalyst. One, based on the strength of our checks, we increase our Q1 SSS growth estimate to 0.0% from (0.4)% vs. cons. of (1.1)%. Importantly, trends strengthened as the quarter progressed, pointing to Q2 traffic/comp upside as well (1.5% MSUSA; 0.7% cons.). Two, early success of ongoing comp initiatives (incremental value focus, upped marketing/promotional cadence, incremental menu innovation, etc.) points to further comp acceleration as 2026 progresses, particularly with easier YoY compares ahead. Three, CMG's year- long cycle of lower margin revisions is almost at an end. Lastly, valuation is an overly pessimistic reflection of CMG's mid-teens LT EBITDA growth algorithm. Therefore, we upgrade to OP from N and increase our PT to $40 from $37. We slightly increase our 2026 EPS estimate to $1.12 from $1.11 (Q1 to $0.24 from $0.23)."

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Shares of Chipotle Mexican Grill closed at $32.94 yesterday.