Morgan Stanley Boosts Chipotle Mexican Grill (NYSE:CMG) Price Target to $39.00

Chipotle Mexican Grill (NYSE:CMG) had its target price raised by equities researchers at Morgan Stanley from $37.00 to $39.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has an “equal weight” rating on the restaurant operator’s stock. Morgan Stanley’s price objective indicates a potential upside of 4.53% from the stock’s current price.

A number of other equities research analysts have also recently weighed in on CMG. BTIG Research restated a “buy” rating and issued a $45.00 price objective on shares of Chipotle Mexican Grill in a report on Thursday. Mizuho lifted their target price on shares of Chipotle Mexican Grill from $40.00 to $41.00 and gave the company an “outperform” rating in a report on Monday, July 13th. Barclays dropped their price target on Chipotle Mexican Grill from $40.00 to $38.00 and set an “equal weight” rating on the stock in a research report on Thursday, April 30th. Stephens upped their price target on Chipotle Mexican Grill from $36.00 to $40.00 and gave the stock an “equal weight” rating in a research note on Thursday. Finally, Weiss Ratings lowered Chipotle Mexican Grill from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, July 24th. Twenty-four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Chipotle Mexican Grill presently has a consensus rating of “Moderate Buy” and an average target price of $43.98.

Chipotle Mexican Grill Price Performance

NYSE:CMG opened at $37.31 on Thursday. The firm’s 50-day moving average price is $32.85 and its 200-day moving average price is $34.62. The company has a market capitalization of $47.86 billion, a PE ratio of 34.23, a P/E/G ratio of 2.49 and a beta of 0.97. Chipotle Mexican Grill has a 1-year low of $28.03 and a 1-year high of $44.27.

Chipotle Mexican Grill (NYSE:CMG) last issued its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.01. Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. The company had revenue of $3.35 billion during the quarter, compared to analyst estimates of $3.33 billion. During the same period last year, the business earned $0.33 EPS. Chipotle Mexican Grill’s quarterly revenue was up 9.3% compared to the same quarter last year. Equities analysts anticipate that Chipotle Mexican Grill will post 1.14 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in CMG. Wealth Watch Advisors INC purchased a new stake in shares of Chipotle Mexican Grill during the third quarter valued at approximately $25,000. MV Capital Management Inc. purchased a new position in Chipotle Mexican Grill in the 4th quarter worth approximately $26,000. Osbon Capital Management LLC purchased a new position in Chipotle Mexican Grill in the 4th quarter worth approximately $28,000. Merkkuri Wealth Advisors LLC bought a new position in Chipotle Mexican Grill in the 1st quarter valued at approximately $28,000. Finally, Ankerstar Wealth LLC bought a new position in Chipotle Mexican Grill in the 4th quarter valued at approximately $33,000. Institutional investors own 91.30% of the company’s stock.

Chipotle Mexican Grill News Summary

Here are the key news stories impacting Chipotle Mexican Grill this week:

• Positive Sentiment: Chipotle reported second-quarter adjusted EPS of $0.33, slightly above the $0.32 consensus, while revenue rose 9.3% year over year to $3.35 billion, broadly ahead of expectations. Chipotle Mexican Grill Stock Rallies as Q2 Results Top Fears, Guidance Rises
• Positive Sentiment: Comparable restaurant sales increased 2.2%, supported by improving customer traffic, menu innovation, digital engagement and restaurant expansion. Management raised its full-year comparable-sales outlook, signaling confidence that momentum is continuing. Chipotle shares rise on quarterly earnings beat, raised outlook
• Positive Sentiment: Analysts remained constructive following the results. DA Davidson raised its price target to $50 and maintained a Buy rating, while BTIG, TD Cowen and Mizuho also retained positive recommendations; Mizuho lifted its target to $43.
• Neutral Sentiment: Unusually heavy call-option activity and multiple price-target revisions indicate heightened investor interest, but these signals can also contribute to short-term volatility rather than establish a lasting trend.
• Negative Sentiment: Management said sales softened late in July amid consumer concerns about a cyclospora outbreak, although Chipotle stated it was not involved in the outbreak. The traffic disruption has raised questions about the durability of the recovery. Chipotle lifts its sales forecast even as a lettuce-linked outbreak slows foot traffic
• Negative Sentiment: Investors also remain concerned about labor and other operating costs pressuring margins. Piper Sandler lowered its target to $39 and Morgan Stanley and Stephens kept more cautious equal-weight ratings, limiting the stock’s upside after its sharp earnings-related advance.

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill is a fast-casual restaurant company known for its Mexican-inspired menu of burritos, bowls, tacos and salads. Founded in 1993 by Steve Ells, the chain emphasizes fresh, customizable meals made from a limited menu of core ingredients and a focus on ingredient quality. Chipotle operates primarily company-owned restaurants and offers dine-in, takeout, catering and delivery through its own digital platforms and third-party partners.

The company is headquartered in Newport Beach, California, and traces its roots to Denver, Colorado.