Chipotle (CMG) Stock Up, Baird Warns of Volatility
NEW YORK (TheStreet) -- Shares of Chipotle Mexican Grill (CMG) - Get Report are gaining 1.21% to $404.54 this afternoon as analysts at Baird warn investors to expect volatility in the stock surrounding its earnings release scheduled for July 21.
The firm said that Chipotle will need to show improving top-line trends during its earnings release to prevent another downward revision to the stock's estimates.
Analysts at Baird are "optimistic" the company can eventually recover from the various instances of bad press in recent months - including multiple health concerns and a drug charge lobbed against a company executive. They retain a positive long-term view on Chipotle.
However, the firm added that the stock as an "elevated short-term risk profile" due to a lack of visibility on near-term sales improvement.
Baird noted that analysts would recommend to "wait for a better point of entry" into the stock.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strongest point has been its very decent return on equity which TheStreet Ratings feels should persist. At the same time, however, TheStreet Ratings finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.
You can view the full analysis from the report here: CMG
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.