NEW YORK (TheStreet) -- Shares of Chipotle Mexican Grill (CMG) are higher by 2.71% to $602.46 in late afternoon trading on Wednesday as the stock reacts positively to a price target increase to $560 from $542 at Wunderlich Securities.
The increase reflects the firm's belief that Chipotle is fairly valued and "that the company has virtually completed its roll out of higher menu prices, sooner that we projected," Wunderlich said.
As a result, Wunderlich is now saying its expects Chipotle's second quarter same store sales to increase by 11%, up from the 8% it estimated previously, and its EPS to rise to $3.10, above the consensus estimate of $3.07, and the firm's previous forecast of $3.01.
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TheStreet Ratings team rates CHIPOTLE MEXICAN GRILL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHIPOTLE MEXICAN GRILL INC (CMG) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins."