Morgan Stanley analyst Brian Harbour maintained a Buy rating on Chipotle today and set a price target of $59.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Brian Harbour has given his Buy rating due to a combination of factors that suggest a positive long-term outlook for Chipotle. Despite a softer third quarter and recalibrated estimates for the second half of the year, Harbour sees the current valuation as attractive and believes that the risk-reward profile remains favorable. He notes that while same-store sales are expected to be slightly negative for the full year, the company’s structural fundamentals, such as unit growth, margins, and technological advancements, remain strong.
Harbour also highlights that Chipotle’s earnings growth is projected to be healthy, with mid to high teens growth expected. He applies a price-to-earnings multiple of approximately 35 times, which is higher than the current market valuation. Additionally, Harbour suggests that if the company can achieve a 5% or higher growth rate, there is potential for an even higher valuation multiple. Overall, he maintains an overweight rating with a price target of $59, reflecting confidence in Chipotle’s ability to leverage its value proposition and deliver growth in the coming years.
In another report released yesterday, Truist Financial also maintained a Buy rating on the stock with a $53.00 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.