Chipotle price target lowered to $52 from $56 at Raymond James

Raymond James lowered the firm’s price target on Chipotle (CMG) to $52 from $56 and keeps an Outperform rating on the shares. A selective stance is maintained across the restaurant sector ahead of what is expected to be a mixed and volatile Q3 earnings season, marked by softer limited-service trends, continued strength in casual dining, and potential commodity inflation for beef-heavy operators offset by lower chicken and dairy costs, the analyst tells investors in a research note. Recent industry softness, despite resilient overall consumer spending, appears driven by pressure on lower-income consumers, elevated unemployment among younger demographics, and broader sentiment headwinds possibly linked to political uncertainty, the firm says.