Analysts at Evercore ISI have revised their price target for Chipotle Mexican Grill (NYSE:CMG), reducing it from $53.00 to $45.00. This adjustment, announced in a report on October 26, 2023, maintains an “outperform” rating for the restaurant operator’s stock. The new target suggests a potential upside of approximately 42.08% based on the stock’s previous close.
In addition to Evercore ISI’s analysis, Chipotle has been the subject of various other reports from notable financial institutions. For instance, Melius Research initiated coverage on Chipotle on July 14, 2023, assigning a “hold” rating with a target price of $60.00. Similarly, Guggenheim adjusted its target from $47.00 to $46.00, maintaining a “neutral” rating as of July 25, 2023. In contrast, Rothschild & Co Redburn upgraded its rating from “neutral” to “buy” while setting a target price of $55.00 on September 3, 2023.
Current Analyst Ratings and Market Performance
The stock has garnered mixed reviews, with two analysts labeling it as a “Strong Buy,” while twenty-two assigned a “Buy” rating. Eleven analysts have rated the stock as a “Hold,” leading to a consensus rating of “Moderate Buy” and an average price target of $49.81, according to data from MarketBeat.
Chipotle’s latest earnings report, released on October 29, 2023, shows that the company achieved earnings of $0.29 per share, matching analysts’ expectations. The company reported a return on equity of 44.32% and a net margin of 13.04%. Revenue for the quarter reached $3 billion, slightly below the expected $3.06 billion, yet reflecting a year-over-year growth of 7.5% from $2.79 billion in the same quarter last year.
Analysts anticipate an earnings per share (EPS) of $1.29 for the current fiscal year, indicating continued growth potential for the restaurant chain.
Institutional Investments and Ownership Trends
Recent movements in institutional investment highlight a growing interest in Chipotle. Operose Advisors LLC entered the market with a new position valued at approximately $25,000 in the second quarter of 2023. Similarly, Signature Resources Capital Management LLC and Lavaca Capital LLC each acquired shares worth around $28,000 during the same period.
Moreover, Activest Wealth Management increased its stake by 109.3%, now holding 517 shares valued at $29,000. Overall, institutional investors own approximately 91.30% of Chipotle’s stock, indicating strong confidence in the company’s long-term prospects.
Founded in 1993, Chipotle Mexican Grill operates restaurants across the United States, Canada, France, Germany, and the United Kingdom. The company specializes in food offerings such as burritos, burrito bowls, tacos, and salads, along with providing delivery services through its app and website.
As analysts continue to navigate the stock’s fluctuations, Chipotle remains a significant player in the fast-casual dining sector, with ongoing interest from both analysts and institutional investors alike.
