Chipotle Mexican Grill Upgraded by Jefferies Group to “Hold” (CMG)
Chipotle Mexican Grill (NYSE:CMG) was upgraded by equities researchers at Jefferies Group from an “underperform” rating to a “hold” rating in a research report issued on Tuesday, TheFlyOnTheWall.com reports. The firm currently has a $400.00 price target on the stock. Jefferies Group’s price target would suggest a potential downside of 0.89% from the company’s current price.
The analysts wrote, “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).”
CMG has been the subject of a number of other recent research reports. 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 analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus price target of $398.09.
Chipotle Mexican Grill (NYSE:CMG) traded up 1.53% during mid-day trading on Tuesday, hitting $409.79. 138,892 shares of the company’s stock traded hands. Chipotle Mexican Grill has a 52 week low of $233.82 and a 52 week high of $418.23. The stock’s 50-day moving average is $396.3 and its 200-day moving average is $367.2. The company has a market cap of $12.650 billion and a P/E ratio of 42.57.
Chipotle Mexican Grill (NYSE:CMG) last posted its quarterly earnings results on Thursday, July 18th. The company reported $2.82 earnings per share for the quarter, beating the analysts’ consensus estimate of $2.81 by $0.01. The company had revenue of $816.80 million for the quarter, compared to the consensus estimate of $802.80 million. During the same quarter last year, the company posted $2.56 earnings per share. Chipotle Mexican Grill’s revenue was up 18.2% compared to the same quarter last year. On average, analysts predict that Chipotle Mexican Grill will post $10.59 earnings per share for the current fiscal year.
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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