Shares of Chipotle Mexican Grill (CMG) - Get Report are on the rise Monday, climbing 2.5% after analysts at Piper Jaffray upped their price target to $590 from $475.

Those analysts may be getting a little ahead of themselves by raising their price target so much, said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, on CNBC's "Stop Trading" segment. 

However, Cramer agreed that "Chipotle is for real" and that the stock has more than likely bottomed. 

This brand should bounce back in the long term, despite the short-term concerns about E. coli, Cramer said. And although this is hurting the company's sales and earnings right now, Cramer believes the problems will eventually be put in the rearview mirror.

Traffic in many of the New York City restaurants has increased, Cramer said, although he acknowledged that they're still not as busy as they were before the outbreaks occurred.

There will be an overhang from the E. coli outbreak, Cramer said, but over time, that overhang should dissipate. 



Chipotle Mexican Grill CMG data by YCharts

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Chipotle stock likely bottomed when it declined toward $400 earlier this year, Cramer said. But after its recent rebound to over $500, investors should wait for a pullback, Cramer advised. Perhaps the quarter won't be that good or this Friday's non-farm payrolls report will weigh on the overall market, he said.

Management has had conviction in the company and has instituted a strong buyback plan. That could support the stock around the $500 level too, so even though investors should wait for a pullback, they should be aware that one may not come, he explained.

For investors, "Chipotle's a good place to be," Cramer concluded. 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.