Market Overview

Oppenheimer's Bittner Downgrades Chipotle, Sees Downside To $400-$450

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  • Chipotle Mexican Grill, Inc. (NYSE: CMG) shares are down 36 percent in the last three months.
  • Oppenheimer's Brian Bittner downgraded the rating for the company to Perform.
  • Many more downward revisions in estimates could be forthcoming, Bittner stated.

“CMG’s multiple is at 32x P/E – our work suggests there’s a lot more cuts to estimates coming,” Bittner wrote. He sees downside to the $400-$450 range. It may be a good idea to short Chipotle, since the company is likely to preannounce.

There is significant lack of visibility into Chipotle’s earnings in 2016. Bittner pointed out that the Street appears too optimistic in their sales and margin expectations. The analyst expects a recovery in Chipotle’s business, albeit from a much lower base than the Street. He believes there is significant downside to the Street estimates.

Chipotle’s downfall would be a gain for Jack in the Box Inc. (NASDAQ: JACK), and make it more interesting in the markets it shares with Chipotle.

Latest Ratings for CMG

DateFirmActionFromTo
Apr 2019Morgan StanleyDowngradesOverweightEqual-Weight
Apr 2019Wells FargoMaintainsMarket PerformMarket Perform
Apr 2019JefferiesDowngradesBuyHold

View More Analyst Ratings for CMG
View the Latest Analyst Ratings

Posted-In: Brian Bittner OppenheimerAnalyst Color Downgrades Analyst Ratings

 

Related Articles (JACK + CMG)

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Latest Ratings

StockFirmActionPT
COMMJP MorganInitiates Coverage On0.0
KEYWSunTrust Robinson HumphreyDowngrades0.0
ISRGCanaccord GenuityMaintains575.0
PBCTFig PartnersDowngrades0.0
CNSGabelli & Co.Downgrades0.0
View the Latest Analytics Ratings
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