Has Wall Street Gotten Its Fill Of Chipotle?

Weak December sales and ongoing concerns over E. coli have sent Chipotle Mexican Grill, Inc. CMG shares plummeting. It there hope for Chipotle to right the ship anytime soon, or are shareholders in for a rough 2016? Here’s what five Wall Street analysts have to say.

Cowen and Company
Analyst Andrew Charles believes “2017 will be a rebound year” for Chipotle and warns that “the return to normalized sales volumes will take time.” The firm has a Market Perform rating on Chipotle and a $415 price target for the stock.

Deutsche Bank
Analyst Karen Short argues that, without identifying the source of the E. coli, “CMG cannot, with ‘integrity,’ invite customers back.” The firm maintains a Hold rating on Chipotle but has lowered its price target dramatically from $480 to $400.
 

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Oppenheimer
Analyst Brian Bittner says that he will upgrade Chipotle to Outperform only when he becomes “highly confident estimates are safe at a stock valuation that is reasonable…we aren’t at that point yet.” The firm maintains a Perform rating on the stock.

Barclays
Analyst Jeffrey Bernstein believes that Chipotle could eventually return to full strength, but “given the series of negative headlines and outsized media/social attention, we believe the timeframe for a complete CMG recovery is extended.” The firm maintains its Equal Weight rating but lowered its price target from $540 to $465.

Credit Suisse
Analyst Jason West forecasts “a meaningful recovery in 2017 on easy compares, improved digital capabilities and possibly a price increase.” The firm maintains an Outperform rating on Chipotle but reduced its price target from $575 to $530.

Disclosure: the author holds no position in the stocks mentioned.