Wunderlich Raises Chipotle Price Target Following Q2 Results

Following the company's second quarter earnings just after the market close on Monday, Wunderlich analyst Robert Derrington hiked his price target on Chipotle Mexican Grill(NYSE: CMG) from $560 all the way to $680.

Despite this large increase, he remains on the sidelines with a Hold rating.

Derrington said the company posted a "dramatic" earnings beat ($3.50 vs. $3.10) and noted Chipotle had its best same-store-sales growth since the first quarter of 2004.

Looking ahead, he noted that the company is expecting further margin expansion and has increased its same-store sales growth rates from the high single-digits to the mid-teens. Based on this, Schindler has raised his 2014 and 2015 EPS estimates from $12.60 and $16.00 to $13.50 and $17.10.

Shares of Chipotle have jumped 10 percent in Tuesday's pre-market.