UPDATE: Sterne Agee Initiates Chipotle Mexican Grill at Buy on Compelling Unit Growth Story

In a report published Wednesday, Sterne Agee analyst Lynne Collier initiated coverage on Chipotle Mexican Grill (NYSE: CMG) with a Buy rating and $429.00 price target.

In the report, Sterne Agee noted, “We are initiating coverage of CMG with a BUY rating and $429 price target, implying ~20% upside. Arguably, CMG has created one the best operating models in the industry's history. Market share gains should continue as Chipotle provides the perfect recipe: convenience, quality, customization & value. We find the unit growth story compelling with the ability to more than double the current store base. Given this model, we project that EPS growth of 20%+ is achievable over the next 3-5 years.”

Chipotle Mexican Grill closed on Tuesday at $358.96.