Chipotle initiated with a Buy at Deutsche Bank

Deutsche Bank initiated coverage of Chipotle with a Buy rating and $2,375 price target. Chipotle is “a rare compounding growth story,” well positioned for sustainable mid-single digit plus growth in same-store sales, unit growth acceleration and margin expansion, the analyst tells investors. Given belief that the company’s multi-faceted sales strategy will drive continued positive traffic and increasing visibility to the path to high-20% restaurant margins, the firm believes the shares offer “a favorable risk/reward,” the analyst added.