Jefferies Group upgraded shares of Chipotle Mexican Grill (NYSE:CMG) from an underperform rating to a hold rating in a research report sent to investors on Tuesday morning, TheFlyOnTheWall.com reports. The firm currently has $400.00 price target on the stock, up from their previous price target of $306.00.
“Primary rationale for Underperform had been high valuation despite earnings risk from slowing SSS and highly unpredictable commodity cost inflation. This is no longer the case though; more favorable food costs are expected this year and next, and CMG has demonstrated its ability to drive mid-single digit SSS without taking menu price action. Valuation is now 33x our ’14 EPS (in line with or below other 20%+ growth companies), and we think fairly balances the company’s 20% EPS growth, best-in-class margins & top line momentum with the risk of relatively limited sales drivers and potential food & labor pressures (can’t contract forward and we worry labor line could be stretched). We are upgrading CMG to a Hold at a PT of $400 (from $306), or 33x our ’14 EPS of $12.24 (consensus $12.93).,” the firm’s analyst wrote.
Jefferies Group has also taken action a number of other consumer discretionary stocks recently. The firm raised its price target on shares of Sonic Corp. from $14.00 to $15.50. They have a hold rating on that stock. Also, Jefferies Group raised its price target on shares of Chuy’s Holdings Inc from $29.00 to $34.00. They have a hold rating on that stock. Finally, Jefferies Group raised its price target on shares of Buffalo Wild Wings Inc. from $93.00 to $96.00. They have a hold rating on that stock.
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks reiterated a neutral rating on shares of Chipotle Mexican Grill in a research note to investors on Thursday, August 8th. They now have a $425.00 price target on the stock. Separately, analysts at Miller Tabak raised their price target on shares of Chipotle Mexican Grill from $415.00 to $422.00 in a research note to investors on Wednesday, August 7th. They now have a buy rating on the stock. Finally, analysts at Wunderlich initiated coverage on shares of Chipotle Mexican Grill in a research note to investors on Tuesday, July 23rd. They set a hold rating and a $430.00 price target on the stock.
Fourteen investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. The company currently has a consensus rating of Buy and an average target price of $398.09.
Shares of Chipotle Mexican Grill (NYSE:CMG) opened at 403.00 on Tuesday. Chipotle Mexican Grill has a 1-year low of $233.82 and a 1-year high of $418.23. The stock has a 50-day moving average of $398.4 and a 200-day moving average of $367.9. The company has a market cap of $12.440 billion and a price-to-earnings ratio of 42.51.
Chipotle Mexican Grill, Inc and its subsidiaries (NYSE:CMG) operate restaurants throughout the United States, as well as two restaurants in Toronto, Canada and two in London, England.
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