Morgan Keegan Downgrades Chipotle Mexican Grill To Underperform, PT At $240

Morgan Keegan has published a research report on Chipotle Mexican Grill

and has downgraded the company from Market Perform to Underperform. In the report, Morgan Keegan writes "While management has done a masterful job growing its culture, SSS, store base and operating results, creeping margin pressures from escalating food and labor costs are projected to restrict EPS growth and possibly CMG's premium valuation. While FY2011, FY2012 revenue growth is projected to remain in the 15%-range (incl. mid-single-digit SSS), flattening store margins and higher G&A costs are projected to slow EPS growth to 20% (to $6.75) in FY11 and 17% (to $7.90) in FY12." Morgan Keegan maintains its $240 price target on Chipotle Mexican Grill, which closed Friday at $268.73.