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Must Know: Analysts’ Price Target for Chipotle Mexican Grill

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Updated

Analysts’ ratings

Chipotle Mexican Grill (CMG) is currently trading at $554 per share. Many of the estimates we’ve seen in this series have been baked into the company’s share price. Let’s look at the analysts’ recommendations and their price targets for the company’s share price over the next year.

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Upside potential

Currently, Wall Street analysts have a price target of $579 for the next 12 months on Chipotle Mexican Grill (CMG). This represents a 4.4% upside from the company’s current share price of $554.

About 47% of analysts have “buy” recommendations on Chipotle, 50% of analysts have “hold” recommendations, and 3% have “sell” recommendations on the company, according to Bloomberg Consensus. Overall, the stock has a “buy” rating. Over the years, we’ve seen Chipotle’s share price move in tandem with analysts’ recommendations. When analysts lowered their 12-month price targets, the share price also declined, and vice versa.

Chipotle’s share price—which is trading below analysts’ consensus target price—doesn’t necessarily mean that the company is a “buy.” Investors have to be careful to also look at where the company’s valuation multiples are trading, which we discussed earlier in this series.

You can also access Chipotle through the Consumer Discretionary Select Sector SPDR ETF (XLY). XLY’s portfolio invests 1% in Chipotle (CMG), 4% in McDonald’s (MCD), 3% in Starbucks (SBUX), and 1.5% in Yum! Brands (YUM).

For more restaurant updates, please visit Market Realist’s restaurants page.

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