Updated from 11:58 am to add comment from Chipotle.
Chipotle (CMG - Get Report) shares were falling Thursday after BMO Capital Markets analyst Andrew Strelzik downgraded the stock to underperform from market perform on concerns over the spread of African swine fever.
The stock declined 5.91% to $664.32.
The price target also was lowered to $620 from $675. The analyst said the spread of African swine fever could inflate protein prices as early as the third quarter, he said in a note Thursday.
"We believe the potential magnitude and duration of [African swine fever] impacts to margins is under-appreciated, and CMG is among the restaurants most at risk," Strelzik said.
A spokesperson from Chipotle said the BMO analysis is not accurate:
"The cost of our pork represents less than 2% of Chipotle's total food costs. Since we purchase higher quality, more expensive pork than commodity pork, and we have pricing agreements in place, we don't expect a significant impact on our costs," Chipotle said in an email.
Chipotle has nine buys, 15 holds, seven sells, according to Bloomberg. Chipotle's consensus price target is $682.69.