UPDATE: Credit Suisse Raises PT on Chipotle Mexican Grill Following 1Q Headwinds
In a report published Friday, Credit Suisse analyst Karen Holthouse reiterated a Neutral rating on Chipotle Mexican Grill (NYSE: CMG), and raised the price target from $330.00 to $360.00.
In the report, Holthouse noted, “1.0% comps weathered 1Q headwinds better than some had feared, and commentary that, ex. all the noise, comps remain stable around 3.0%, is in line with our view that the consumer remains in the sluggish but stable trajectory. On a two-year basis, the same trends prevailed, as, ex. noise, the QTD compare in 2012 was also flattish with 1Q. Our F13-F14 EPS est increases to $10.52, $12.69, and $15.25 from $10.07, $12.28, and $14.95. Our Target Price increases to $360 (from $330), reflecting a 27x multiple on our NTM< 12 months from now, EPS est. of $13.28. Net of lower inflation and lower pricing a positive for COGS, but investors may focus on the price piece: Our gross margin est. actually comes up by 70bps; however, pricing happening late 3Q (at best) walks back from prior talk of mid-year, and this may present a sentiment issue.”
Chipotle Mexican Grill closed on Thursday at $328.26.
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