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Oppenheimer's Bittner Downgrades Chipotle, Sees Downside To $400-$450

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  • Chipotle Mexican Grill, Inc. (NYSE: CMG) shares are down 36 percent in the last three months.
  • Oppenheimer's Brian Bittner downgraded the rating for the company to Perform.
  • Many more downward revisions in estimates could be forthcoming, Bittner stated.

“CMG’s multiple is at 32x P/E – our work suggests there’s a lot more cuts to estimates coming,” Bittner wrote. He sees downside to the $400-$450 range. It may be a good idea to short Chipotle, since the company is likely to preannounce.

There is significant lack of visibility into Chipotle’s earnings in 2016. Bittner pointed out that the Street appears too optimistic in their sales and margin expectations. The analyst expects a recovery in Chipotle’s business, albeit from a much lower base than the Street. He believes there is significant downside to the Street estimates.

Chipotle’s downfall would be a gain for Jack in the Box Inc. (NASDAQ: JACK), and make it more interesting in the markets it shares with Chipotle.

Latest Ratings for CMG

DateFirmActionFromTo
Feb 2022Morgan StanleyMaintainsOverweight
Feb 2022Deutsche BankMaintainsHold
Feb 2022BarclaysMaintainsEqual-Weight

View More Analyst Ratings for CMG

View the Latest Analyst Ratings

 

Related Articles (JACK + CMG)

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Posted-In: Brian Bittner OppenheimerAnalyst Color Downgrades Analyst Ratings

Latest Ratings

StockFirmActionPT
SEDGB of A SecuritiesMaintains411.0
PTLOPiper SandlerMaintains28.0
AOUTLake StreetMaintains26.0
RAPTPiper SandlerMaintains52.0
OCXLake StreetMaintains6.0
View the Latest Analytics Ratings
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