RBC Analyst Reiterates Outperform Rating For Chipotle Mexican Grill, Inc. (CMG)
RBC analyst, David Palmer, reiterates his Outperform rating for Chipotle Mexican Grill, Inc. (NYSE:CMG) ahead of the company’s 2Q16 results.
The analyst explains that he anticipates slow but steady recovery for CMG. He notes, “our proprietary brand surveys show Chipotle’s quality scores have dropped over the last year, and we will be tracking scores quarterly to see if recently introduced loyalty program and food news can restore frequency among former loyal consumers.”
The analyst maintains that he will be keeping an eye out for brand reputation recovery in the quarters to come. The company’s reputation has been slammed after health concerns rocked the restaurant chain, and the analyst explains that CMG’s quality scores have decreased 12% year over year.
The analyst sets a price target of $485 for CMG.
According to TipRanks, David Palmer is ranked #112 of 4,057 analysts and maintains a success rate of 73% with an average return of 10.9%.