Chipotle price target lowered to $2,200 from $2,300 at KeyBanc

KeyBanc analyst Eric Gonzalez lowered the firm’s price target on Chipotle to $2,200 from $2,300 and keeps an Overweight rating on the shares. The firm notes Chipotle’s Q2 results included EPS/store level margins that were largely ahead of its forecasts, while same-store sales growth was largely in line with consensus. However, the company’s Q3 outlook implies downside to Street numbers as same-store sales growth is projected to moderate to the low- to mid-single-digit range and store level margins are likely to be pressured from labor/rising avocado costs, KeyBanc adds.