NEW YORK (TheStreet) -- Shares of Chipotle Mexican Grill Inc (CMG) are up 1.65% to $631.61 in early market trading Friday, after the burrito chain was upgraded to "outperform" from "market perform" by analysts at BMO Capital this morning.
The firm also increased its price target on shares of Chipotle to $760 from $693.
BMO analysts believe Chipotle is a "compelling investment," pointing to its strong outlook amid milder expectations.
Denver-based Chipotle operates Chipotle Mexican Grill restaurants, serving a menu of burritos, tacos, burrito bowls, and salads through its 1,410 restaurant locations.
Insight from TheStreet's Research Team:
Jim Cramer commented on Chipotle Mexican Grill in a recent post on RealMoney.com. Here is what Cramer had to say about the stock:
Now the stock, which, after a breather, had rallied to within 30 points of that all-time high price going into earnings, is going to get crushed today because of these same two issues: pork shortage and tough comps ahead.
I believe that many thought that somehow Chipotle was sandbagging with its previous outlook. I also think that many thought that the pork problem would be put behind them. Hence the run into the quarter. So when we heard last night that comparable store sales had "slowed" to 10.4% and would slow further later this year as comparisons really got tough, and that the pork problem is very much still with the company and will be with the company until the fourth quarter, the battering ram came out again.