Chipotle Mexican Grill's Pricing Study Affirms Strong Value Proposition, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Raymond James analyst Brian M. Vaccaro reiterated an Outperform rating on Chipotle Mexican Grill Inc (NYSE:CMG) and raised the price target from $67 to $70. Despite viral social media posts questioning portion sizes and a softer consumer backdrop, Chipotle is sustaining strong comp and traffic outperformance. The company recently announced a 50-for-1 stock split. The analyst expects 2Q24 revenue to increase nearly 17% y/y to $2.94 billion and EPS to rise 22% y/y to $1.10.
June 28, 2024 | 5:38 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Raymond James analyst Brian M. Vaccaro reiterated an Outperform rating on Chipotle Mexican Grill Inc (NYSE:CMG) and raised the price target from $67 to $70. Despite viral social media posts questioning portion sizes and a softer consumer backdrop, Chipotle is sustaining strong comp and traffic outperformance. The company recently announced a 50-for-1 stock split. The analyst expects 2Q24 revenue to increase nearly 17% y/y to $2.94 billion and EPS to rise 22% y/y to $1.10.
The analyst's reiteration of an Outperform rating and increased price target, along with positive expectations for revenue and EPS growth, are likely to boost investor confidence in the short term. The 50-for-1 stock split may also attract more retail investors, potentially driving the stock price up.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100