Chipotle Mexican Grill Inc. (CMG) fell after analysts at Mizuho cut their rating on the Mexican food restaurant chain to underperform from neutral but raised the price target to $330 from $300.
Mizuho's price target is much lower than Wall Street's average of $418, according to Bloomberg.
The new rating put a dent in the stock's recent run, causing shares to fall 1.9% to $455.01 in premarket trading on Tuesday, July 10. Chipotle's stock has jumped more than 80% since mid-February after Brian Niccol was named as the company's new CEO.
While Niccol, the former head of Yum! Brands Inc.'s Taco Bell brand, is the right pick to lead Chipotle, according to Mizuho analyst Jeremy Scott, there is a lack of catalysts to push the company's stock forward from here.
In an interview with TheStreet recently, Niccol pointed to the digital front as the catalyst that will drive the company forward over the next two years.
"Where I think the puck is headed is giving people more access and giving them more convenience. It's that simple. The more access we can give to people, with that comes faster speed to their food and I think we continue to win. Then you layer on top of that a rewards program and now you can engage with them at a different level," Niccol said.