UPDATE: Goldman Sachs Adds Chipotle Mexican Grill to Americas Conviction List

Goldman Sachs has published a research report on Chipotle Mexican Grill (NYSE: CMG) and has added the company to its Americas Conviction List.

In the report, Goldman Sachs writes, "We add Chipotle Mexican Grill (CMG; Buy) to the Americas Conviction List and see about 20% upside to our $410 price target. We view CMG as being at a very early stage of growth, and see it likely that it continues to compound for many years to come. We estimate the total potential US units for CMG to be around 3,500, which means the company is only at around 30% of potential penetration today. Supporting this view are the facts that: (1) US brand awareness is still low at only 60%, (2) average sales per restaurant and traffic are still increasing at a rapid pace, (3) return on capital continues to rise, and (4) new store productivity is stable and robust."

Goldman Sachs maintains its Buy rating and and has raised the price target from $390 to $410 on Chipotle Mexican Grill, which is currently trading up $8.03 from yesterday's $341.27 closing price.