UPDATE: Wunderlich Securities Reiterates Hold Rating, Lowers PT on Chipotle Mexican Grill on Decelerating Trends Ahead

In a report published Tuesday, Wunderlich Securities analyst Robert M. Derrington reiterated a Hold rating on

, but lowered the price target from $680.00 to $660.00. In the report, Wunderlich Securities noted, “Last night after market close, Chipotle Mexican Grill (CMG) reported a dramatic 3Q14 (Sept) EPS beat as stronger than projected revenue and margins pushed EPS up 56.0% to $4.15 vs. our $3.69, street $3.84 estimates. Revenue increased 31.1%, supported by 12% new units and SSS of 19.8%--its strongest increase since the company's IPO in 2006. Sales leverage pushed restaurant margins (ex D&A) up 200bps 28.8%, contributing to the EPS growth. Despite its impressive 2014TD performance, management cautioned that 2015 will be challenged lapping those results and provided more cautious SSS guidance including decelerating trends ahead. Given that outlook and factoring its 5-year average P/E of 33.5x to our revised 2016 EPS, we are lowering our target to $660 from $680 and reit. our Hold rating.” Chipotle Mexican Grill closed on Monday at $653.03.