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SunTrust's Barlett Highlights 'Recovery Intact' At Chipotle, Raises Target To $550 And Maintains Buy

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SunTrust Robinson Humphrey’s Jake Bartlett reiterated a Buy rating on Chipotle Mexican Grill, Inc. (NYSE: CMG), while raising the price target from $520 to $550.

Same-Store Sales Decline

Although the company’s February same-store sales and 1Q16 EPS guidance were both lower than estimated, Bartlett expects investors to “take a longer-term view on valuation given recovering (albeit slowly) sales.”

Related Link: Maxim Says 'Not So Fast' On Chipotle, Downgrades To Sell

February same-store sales declined 26.1 percent, worse than the estimate of a 17 percent decline and consensus expectations of a 23 percent decline.

However, the analyst believes that sales were adversely impacted by Chipotle Mexican Grill’s free burrito giveaway, which might have led to cannibalization.

Estimates Lowered

The EPS estimates for 2016, 2017 and 2018 have been lowered by 40 percent, 16 percent and 13 percent, respectively.

Latest Ratings for CMG

DateFirmActionFromTo
Jul 2019Initiates Coverage OnBuy
Jul 2019MaintainsBuy
Jul 2019MaintainsUnderperform

View More Analyst Ratings for CMG
View the Latest Analyst Ratings

Posted-In: Jake Bartlett SunTrust Robinson HumphreyAnalyst Color Long Ideas Price Target Analyst Ratings Trading Ideas

 

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