Why Wedbush Raised Its Price Target for Chipotle


Jun. 25 2018, Published 8:10 a.m. ET

Wedbush’s price target

On June 22, Wedbush analyst Nick Setyan raised his price target for Chipotle Mexican Grill (CMG) from $350 to $450, while maintaining a “neutral” rating. The new price target represents a 4.2% fall from its current stock price of $469.94. Setyan believes the timing and scale of the company’s restaurant remodeling, which it is in the initial phases of, will determine its same-store sales growth.

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Other analysts’ recommendations

Of the 32 analysts following Chipotle, 25% recommend “buy,” 68.8% recommend “hold,” and 6.3% recommend “sell.” Their average 12-month target price for the stock is $395.25, which represents a 15.9% fall from its current stock price.

On June 25, Barclays raised its price target from $320 to $345, and on June 21, Telsey Advisory raised its price target from $350 to $465. On May 7, Cowen and Company increased its price target from $350 to $395. Since the announcement of its first-quarter earnings on April 25, many analysts have raised their price targets.

Chipotle’s stock price moves in tandem with analysts’ estimates. When analysts raise their price targets, the company’s stock price rises, and vice versa. Although Chipotle is trading above analysts’ price target, it is not an automatic “sell.” Investors are advised to analyze analysts’ estimates before making any investment decisions.

Peer comparison

Peers’ price targets and return potential are as follows:

  • Shake Shack’s (SHAK) price target is $49.80, which represents a 27.7% fall from its current price.
  • The Cheesecake Factory’s (CAKE) price target is $53.03, which represents an 8.0% fall from its current price.

Next, we’ll look at Chipotle’s stock performance.


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