UPDATE: RBC Capital Markets Initiates Coverage on Chipotle Mexican Grill with Outperform Rating, $620 PT on Multiple Positive Factors

In a report published Friday, RBC Capital Markets analyst David Palmer initiated coverage on

with an Outperform rating and $620.00 price target. In the report, RBC Capital Markets noted, “We believe Chipotle's combination of high incremental returns and sustainability deserves a premium ratio of P/E to earnings growth to high growth peers. In addition, its near-peak relative multiple should be supported by relative sales and earnings momentum (which is accelerating) and its high appeal to Millennials.” Chipotle Mexican Grill closed on Thursday at $524.92.