UPDATE: Morgan Stanley Upgrades Chipotle Mexican Grill Following AlphaWise Consumer Survey
In a report published Monday, Morgan Stanley analyst John Glass upgraded the rating on Chipotle Mexican Grill (NYSE: CMG) from Equal-Weight to Overweight, and named a $485.00 price target.
In the report, Morgan Stanley noted, “Most recently, our AlphaWise consumer survey shows CMG has best in class value scores, a strong indicator of future traffic gains. This also provides headroom for pricing, which we still believe is 5% lower than peers on core items. Pricing will likely be increased early in ‘14. Finally, we see the debate shifting on CMG as it increasingly articulates its vision of developing additional concepts (ShopHouse may just be the beginning), significantly expanding the total addressable market and supporting the multiple. Raising our above consensus EPS for '14 and '15. While valuation is not the most compelling selling point now, historically owning best-in-class growth has rewarded LT shareholders. See PT of ~$485 (15+% upside).”
Chipotle Mexican Grill closed on Friday at $419.00.
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