UPDATE: BMO Capital Markets Raises PT on Chipotle Mexican Grill on Reported 1Q EPS
In a report published Friday, BMO Capital Markets analyst Phillip Juhan reiterated a Market Perform rating on Chipotle Mexican Grill (NYSE: CMG), and raised the price target from $310.00 to $375.00.
In the report, Juhan noted, “Chipotle reported 1Q EPS of $2.45 (~25% growth), which was 15% above the First Call mean estimate (see Exhibit 1 for details). Keep in mind the stock traded down nearly 3.5% during Thursday's session to close at ~$328 (just prior to the 1Q release). We think the 1Q EPS beat is enough to lift the shares back to the $340 range, effectively retracing yesterday's decline. Overall, we think the positive reaction to the 1Q results will remain somewhat subdued as the earnings beat was of lesser quality than we've seen in the past from CMG, same-store sales remain sluggish by CMG standards (+3% normalized in April), restaurant margins remain under pressure, and management will likely delay the timing of an anticipated 3%-5% menu price increase (to late summer/early fall – ‘if it even happens this year at all').”
Chipotle Mexican Grill closed on Thursday at $328.36.
Latest Ratings for CMG
|Aug 2014||Longbow Research||Downgrades||Buy||Neutral|
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