uploads///

Analysts Favor ‘Hold’ Ratings ahead of Chipotle’s Q2 Earnings

By

Oct. 11 2020, Updated 12:28 p.m. ET

Price target

On July 17, Chipotle Mexican Grill (CMG) was trading at $452.54 per share. On the same day, analysts expected the company’s stock price to reach $416.70 in the next 12 months, which represents a fall of 7.9% from its current stock price.

From the graph below, we can see that the average price target has increased from $314.48 in April to the current $416.70. The strong first-quarter earnings and initiatives taken by the company’s management to drive its sales appear to have compelled analysts to raise their price targets.

Article continues below advertisement

On July 16, Morgan Stanley increased its price target from $372.00 to $398.00. Jefferies raised its price target to $400.00 on July 12. Since the announcement of Chipotle’s first-quarter earnings, Mizuho, SunTrust Robinson, Wedbush, Cowen and Company, and Canaccord Genuity have all increased their price targets on its stock.

Analysts’ ratings

Of the 32 analysts that follow Chipotle, 25.0% recommend a “buy,” 65.6% recommend a “hold,” and 9.4% recommend a “sell.” On July 10, Mizuho had downgraded the stock from “neutral” to “underperform.”

Chipotle’s stock price is moving in tandem with analysts’ ratings. Currently, Chipotle is trading above analysts’ 12-month price target. However, this doesn’t mean an automatic “sell.” Investors are advised to study analysts’ estimates discussed in the previous article before making any investment decisions.

Peer comparisons

The target prices and return potential of Chipotle’s peers follow:

  • Shake Shack (SHAK) has a target price of $50.40, which represents a fall of 24.6% from its current stock price of $66.86.
  • The Cheesecake Factory (CAKE) has a target price of $53.43, which represents a fall of 6.5% from its current stock price of $57.13.
Advertisement

More From Market Realist

  • A "now hiring" sign outside a Popeyes restaurant, one sign that employers are having trouble finding employees willing to work for current wages.
    Consumer
    Why Employers Are Struggling To Fill Jobs Despite High Unemployment
  • Beyond Meat patties in a grocery cart
    Consumer
    Buying the Dip on Beyond Meat (BYND) Stock Is a Risky Move
  • People looking at data on a laptop
    Consumer
    Is Driven Brands (DRVN) a Good Stock to Buy? A Look at the Year Ahead
  • A Moscow Mule drink made with Reed's
    Consumer
    Is Reed's (REED) a Good Stock to Buy? A Look at the Year Ahead
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.