SunTrust Still Expecting A Strong Comps Recovery At Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) shares have underperformed their restaurant peers over the past month, declining 12.9 percent.
Jake Bartlett of SunTrust Robinson Humphrey maintains a Buy rating on the company, with a price target of $550.
SSS Recovery Likely
Bartlett expressed a continued bullish stance on Chipotle, with expectations of robust same-store sales recovery going forward.
“The trajectory of NT SSS is disappointing, but we see multiple NT and LT drivers to a SSS recovery,” the analyst mentioned.
The 2Q same-store sales estimate has been lowered from a decline of 18 percent to a decline of 20 percent.
However, the analyst also pointed out that the near-term and medium-term drivers included loyalty, chorizo, digital ordering, delivery and catering, while favorable real estate and price-value propositions could be long-term drivers of same-store sales recovery.
The EPS estimates for 2016 and 2017 have been lowered.
Latest Ratings for CMG
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Feb 2022 | Morgan Stanley | Maintains | Overweight | |
| Feb 2022 | Deutsche Bank | Maintains | Hold | |
| Feb 2022 | Barclays | Maintains | Equal-Weight |
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