Chipotle, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew Charles from TD Cowen maintained a Buy rating on the stock and has a $40.00 price target.
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Andrew Charles has given his Buy rating due to a combination of factors, despite some short-term challenges. He acknowledges that Chipotle’s shares may face difficulties in the next 3-6 months due to a slowdown in sales during September and October, as well as the absence of 2026 same-store sales guidance. However, he sees a favorable risk/reward scenario over a 12-month investment horizon, with updated bull and bear cases suggesting potential for significant upside.
Charles also notes that while Chipotle is experiencing greater than expected headwinds in same-store sales, particularly from weakening financial health among Gen Z consumers, the company’s long-term prospects remain strong. He highlights Chipotle’s value and quality perceptions, which outperform its fast-casual peers, along with its scale leadership and strong balance sheet. These factors contribute to his optimistic outlook once the broader restaurant industry environment improves.
In another report released on October 27, RBC Capital also maintained a Buy rating on the stock with a $58.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CMG in relation to earlier this year.