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UPDATE: Chipotle Upgraded By JP Morgan Following 6% Drop on Thursday

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On Monday, J.P. Morgan upgraded shares of Chipotle Mexican Grill (NYSE: CMG) from Neutral to Overweight and raised the price target from $550 to $575.

Analyst John Ivankoe believes “traffic momentum, three-years of latent pricing power and a variety of announced sales levers (vegan sofritas, catering, throughput, traditional and non-traditional marketing, mobile ordering/payment) should reduce the effect of tougher comp comparisons and still allow for modest restaurant margin growth despite high inflation.”

Average long-term growth will be driven by “longevity of domestic Chipotle unit expansion and low-risk investment optionality."

The $575 price target is calculated using a “multiple of 35x F15 EPS plus the value of ~25 in F15 cash on hand implying a $575 price target at Dec-14.”

Shares are trading higher by 0.6 percent to $522.75, recovering a portion of Thursday's 6.2 percent drop following first quarter earnings.

Latest Ratings for CMG

Feb 2017Maxim GroupUpgradesSellHold
Jan 2017JP MorganDowngradesOverweightNeutral
Jan 2017WedbushUpgradesUnderperformNeutral

View More Analyst Ratings for CMG
View the Latest Analyst Ratings

Posted-In: John Ivankoe JP MorganAnalyst Color Upgrades Analyst Ratings


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