Oppenheimer analyst Brian Bittner maintained a Hold rating on Chipotle (NYSE: CMG) today. The company’s shares closed yesterday at $454.17, close to its 52-week high of $474.46.
Bittner said:
“CMG will discuss its new strategic, operational and financial initiatives on a 6/27 “special” investor call. We expect top-line drivers to focus on marketing, digital/ delivery and new menu innovation. And to support this, we also expect mgmt to unveil investments in additional op-ex and cap-ex. While difficult to pinpoint the exact long- term earnings potential of CMG, we believe buying stock at current levels requires a medium-term path to at least $20 of EPS (vs Street’s $8.60/sh in ’18E). Our overall analysis does not support such earnings power; therefore, we believe the stock is becoming overvalued into this next business cycle.”
According to TipRanks.com, Bittner is a 5-star analyst with an average return of 11.5% and a 69.2% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Cheesecake Factory.
The word on The Street in general, suggests a Hold analyst consensus rating for Chipotle with a $397.25 average price target, which is a -12.5% downside from current levels. In a report issued on June 22, Wedbush also maintained a Hold rating on the stock with a $450 price target.
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Based on Chipotle’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $59.45 million. In comparison, last year the company had a net profit of $46.12 million.
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Chipotle Mexican Grill, Inc. engages in the development and operation of fast-casual, fresh Mexican food restaurants throughout the U.S. It offers focused menu of burritos, tacos, burrito bowls, and salads, prepared using classic cooking methods. The company was founded by Steve Ells in 1993 and is headquartered in Denver, CO.
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