Wall Street is liking what it sees in the burrito maker chain.
Piper Jaffray analyst Nicole Miller Regan boosted her 12-month price target to by $90 to $450, following earnings. "We remain confident in the company's long-term growth profile and its industry-leading approach to both managing and growing its human capital base," Regan wrote in a note. "Further, we have adjusted our estimates to reflect the relative increase of same-store sales trends for the year and ongoing cost management in the face of what appears to be somewhat of a deceleration in near-term inflation expectations." She rates Chipotle shares 'overweight.'
Bank of America Merrill Lynch analyst Joseph Buckley also boosted his 12-month price target, raising it $30 to $450 "on a higher expected valuation supported by re-accelerating sales at Chipotle," fueled by the company's slight improved same-store sales guidance and catering plans that are gradually being rolled out to several hundred stores.
Deutsche Bank analysts were not quite as bullish on the stock. Analyst Jason West maintains his "hold" rating on the stock. Chipotle's second-quarter results "were somewhat mixed in that traffic came in stronger than expected, though management again delayed [the] decision to raise menu pricing," the note says. "The diminished bull case around pricing and relatively full valuation may limit near-term upside in the shares."
-- Written by Laurie Kulikowski in New York.
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