Of the 32 analysts that follow Chipotle Mexican Grill (CMG), 28.1% favor a “buy,” 62.5% favor a “hold,” and 9.4% recommend a “sell.” On July 31, Jefferies raised its rating to “buy” from “hold.”
On August 10, Chipotle was trading at $485.47 per share. On the same day, analysts set an average price target of $450.52, which represents a fall of 7.2% from its current stock price.
Since the announcement of Chipotle’s second-quarter earnings, Jefferies, UBS, BMO, Maxim, Stifel, SunTrust Robinson, Bernstein, Barclays, and Morgan Stanley have all raised their price targets. Jefferies has increased its price target from $400 to $550.
Stifel raised its price target from $325 to $450, and Bernstein increased its price target from $500 to $560. Chipotle’s strong second-quarter earnings and measures adopted by the company’s management to drive its sales appear to have prompted analysts to raise their price targets.
On August 10, Chipotle was trading at a forward PE (price-to-earnings) multiple of 45.8x compared to 42.9x before the announcement of its second-quarter earnings. On the same day, its peers Shake Shack and McDonald’s were trading at forward PE multiples of 83.5x and 19.8x, respectively.