Chipotle Mexican Grill Stock Rating Upgraded by Morgan Stanley (CMG)
Chipotle Mexican Grill (NYSE:CMG) was upgraded by equities researchers at Morgan Stanley from an “equal weight” rating to an “overweight” rating in a research report issued on Monday, Analyst Ratings.Net reports. The firm currently has a $485.00 target price on the stock. Morgan Stanley’s price target indicates a potential upside of 15.75% from the company’s current price.
The analysts wrote, “Most recently, our AlphaWise consumer survey shows CMG has best in class value scores, a strong indicator of future traffic gains. This also provides headroom for pricing, which we still believe is 5% lower than peers on core items. Pricing will likely be increased early in ’14. Finally, we see the debate shifting on CMG as it increasingly articulates its vision of developing additional concepts (ShopHouse may just be the beginning), significantly expanding the total addressable market and supporting the multiple. Raising our above consensus EPS for ’14 and ’15. While valuation is not the most compelling selling point now, historically owning best-in-class growth has rewarded LT shareholders. See PT of ~$485 (15+% upside).”
A number of other analysts have also recently weighed in on CMG. Analysts at Northcoast Research initiated coverage on shares of Chipotle Mexican Grill (NYSE:CMG) in a research note to investors on Friday, August 23rd. They set a “sell” rating on the stock. Separately, analysts at Jefferies Group upgraded shares of Chipotle Mexican Grill (NYSE:CMG) from an “underperform” rating to a “hold” rating in a research note to investors on Tuesday, August 20th. They now have a $400.00 price target on the stock, up previously from $306.00. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Chipotle Mexican Grill (NYSE:CMG) in a research note to investors on Thursday, August 8th. They now have a $425.00 price target on the stock. One equities research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and twelve have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $401.87.
Shares of Chipotle Mexican Grill (NYSE:CMG) opened at 419.00 on Monday. Chipotle Mexican Grill has a 52-week low of $233.82 and a 52-week high of $427.72. The stock’s 50-day moving average is $411.4 and its 200-day moving average is $375.4. The company has a market cap of $12.934 billion and a price-to-earnings ratio of 44.19.
Chipotle Mexican Grill (NYSE:CMG) last announced its earnings results on Thursday, July 18th. The company reported $2.82 EPS for the quarter, beating the Thomson Reuters 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 in the prior year, the company posted $2.56 earnings per share. The company’s quarterly revenue was up 18.2% on a year-over-year basis. On average, analysts predict that Chipotle Mexican Grill will post $10.59 earnings per share for the current fiscal year.
In other Chipotle Mexican Grill news, CEO Steve Ells sold 28,349 shares of Chipotle Mexican Grill stock on the open market in a transaction that occurred on Monday, September 16th. The stock was sold at an average price of $423.10, for a total transaction of $11,994,461.90. Following the completion of the sale, the chief executive officer now directly owns 134,543 shares in the company, valued at approximately $56,925,143. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.
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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