Chipotle Mexican Grill (NYSE:CMG) Price Target Raised to $45.00

Chipotle Mexican Grill (NYSE:CMG) had its price objective lifted by Argus from $40.00 to $45.00 in a report published on Tuesday morning,Benzinga reports. Argus currently has a buy rating on the restaurant operator’s stock.

Several other analysts have also commented on the stock. Piper Sandler lowered their price target on shares of Chipotle Mexican Grill from $42.00 to $39.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. Morgan Stanley lifted their price objective on Chipotle Mexican Grill from $37.00 to $39.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Guggenheim reaffirmed a “neutral” rating and issued a $36.00 target price (up from $35.00) on shares of Chipotle Mexican Grill in a research note on Friday, July 31st. TD Cowen reiterated a “buy” rating and set a $44.00 target price on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of Chipotle Mexican Grill in a research report on Friday, July 31st. Twenty-four equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Chipotle Mexican Grill currently has an average rating of “Moderate Buy” and an average target price of $44.16.

Chipotle Mexican Grill Stock Down 2.3%

Chipotle Mexican Grill stock opened at $33.72 on Tuesday. The firm has a market capitalization of $42.67 billion, a PE ratio of 30.94, a P/E/G ratio of 2.20 and a beta of 0.94. Chipotle Mexican Grill has a 52 week low of $28.03 and a 52 week high of $44.27. The firm’s 50-day simple moving average is $33.04 and its 200 day simple moving average is $34.43.

Chipotle Mexican Grill (NYSE:CMG) last posted its earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.01. The firm had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. The firm’s revenue for the quarter was up 9.3% on a year-over-year basis. During the same period last year, the firm posted $0.33 EPS. On average, research analysts expect that Chipotle Mexican Grill will post 1.14 EPS for the current fiscal year.

Hedge Funds Weigh In On Chipotle Mexican Grill

Institutional investors have recently modified their holdings of the company. Norges Bank purchased a new position in shares of Chipotle Mexican Grill during the 4th quarter worth $711,837,000. Vanguard Group Inc. grew its position in shares of Chipotle Mexican Grill by 14.8% in the fourth quarter. Vanguard Group Inc. now owns 144,588,220 shares of the restaurant operator’s stock valued at $5,349,764,000 after purchasing an additional 18,660,882 shares during the period. Capital World Investors grew its position in shares of Chipotle Mexican Grill by 15.8% in the fourth quarter. Capital World Investors now owns 101,688,010 shares of the restaurant operator’s stock valued at $3,762,457,000 after purchasing an additional 13,843,222 shares during the period. Clearbridge Investments LLC increased its stake in Chipotle Mexican Grill by 206.4% in the fourth quarter. Clearbridge Investments LLC now owns 14,062,158 shares of the restaurant operator’s stock valued at $520,300,000 after purchasing an additional 9,473,120 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD increased its stake in Chipotle Mexican Grill by 18.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 58,447,867 shares of the restaurant operator’s stock valued at $2,162,572,000 after purchasing an additional 9,237,720 shares during the last quarter. Institutional investors and hedge funds own 91.30% of the company’s stock.

Key Stories Impacting Chipotle Mexican Grill

Here are the key news stories impacting Chipotle Mexican Grill this week:

• Positive Sentiment: Analyst support remains intact. BTIG reaffirmed its “buy” rating with a $45 price target, while Argus also raised its target to $45, indicating analysts see substantial long-term upside if the outbreak is contained. BTIG rating update Argus price target update
• Positive Sentiment: Chipotle recently reported a quarterly earnings and revenue beat, with comparable sales returning to growth, supported by new menu items and a revamped rewards program. Chipotle quarterly performance analysis
• Neutral Sentiment: Chipotle removed jalapeños from affected Minnesota restaurants, switched to an alternative supplier and is cooperating with health authorities. Management said its previously issued annual targets do not include any financial impact from the outbreak, leaving potential revisions uncertain. Chipotle annual targets and outbreak
• Negative Sentiment: The CDC has linked the outbreak to jalapeños served at Chipotle and other restaurants across 27 states. Reports of hundreds of illnesses are increasing concerns about potential legal costs, restaurant disruption, supplier scrutiny and damage to the brand’s food-safety reputation. Salmonella outbreak linked to Mexican jalapeños Chipotle stock and Salmonella outbreak
• Negative Sentiment: Investors are also questioning Chipotle’s valuation because higher food and labor costs have compressed restaurant-level margins and reduced net income and EPS, despite sales growth. A premium earnings multiple leaves less room for execution or reputational setbacks. Chipotle valuation and margin analysis

About Chipotle Mexican Grill

Chipotle Mexican Grill is a fast-casual restaurant company known for its Mexican-inspired menu of burritos, bowls, tacos and salads. Founded in 1993 by Steve Ells, the chain emphasizes fresh, customizable meals made from a limited menu of core ingredients and a focus on ingredient quality. Chipotle operates primarily company-owned restaurants and offers dine-in, takeout, catering and delivery through its own digital platforms and third-party partners.

The company is headquartered in Newport Beach, California, and traces its roots to Denver, Colorado.