Chipotle (CMG) received a Hold rating and a $510 price target from Maxim Group analyst Stephen Anderson today. The company’s shares closed yesterday at $514.82, close to its 52-week high of $530.68.
Anderson wrote:
“We downgrade Chipotle Mexican Grill (CMG) to Hold, from Buy while maintaining our $510 price target, as the share price surpassed our price target earlier this week. Although our 4Q18 (December) pro forma EPS estimate is at a Street-high $1.92 (vs. consensus $1.35), we lower our 2019 EPS estimate to $12.93, from $13.14 (vs. consensus $11.99), as we expect CMG to boost marketing expenses to support the launch of new menu items and digital initiatives. We model continued margin expansion, renewed unit growth, and share buybacks in 2019, but in light of the 34% gain since the late December low, we now believe potential positives and risks now are in balance.”
According to TipRanks.com, Anderson is a 5-star analyst with an average return of 9.9% and a 66.0% success rate. Anderson covers the Services sector, focusing on stocks such as Dave & Busters Entertainment, Good Times Restaurants Inc, and Dine Brands Global Inc.
Chipotle has an analyst consensus of Moderate Buy, with a price target consensus of $474.05, a -7.9% downside from current levels. In a report issued on January 15, Cowen & Co. also reiterated a Hold rating on the stock with a $485 price target.
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Chipotle’s market cap is currently $14.31B and has a P/E ratio of 76.61. The company has a Price to Book ratio of 9.96.
Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is negative on the stock.
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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.
