"Historically this company has had a long runway for growth. Looking at it now, it's a $4 billion brand with 2,200 restaurants, yet it's trading if it's an early-stage grower that can still grow 10% for the next five to 10 years," Guggenheim director Matt DiFrisco said on CNBC's "Halftime Report" today.
DiFrisco is the analyst at the firm who made the call and does not see that upside in growth longer-term.
"The one issue I have with Chipotle is they are trying to transform themselves," Najarian Family and Advisors Office co-founder Pete Najarian said.
The bigger problem, however, is whether Chipotle's margin decline will prove to be a significant challenge for the company. "If that's the case, you can't own this thing," Najarian stated.
"If you're paying this price for growth, you need to have some proof that growth is going to come through. Until you see that proof, forget the stock," Lebenthal Asset Management CEO Jim Lebenthal said.
Separately, TheStreet Ratings Team has a hold rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strongest point has been its very decent return on equity, which TheStreet Ratings Team feels should persist.
But the team also finds weaknesses, including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: CMG.