Chipotle price target lowered to $55 from $57 at BMO Capital

BMO Capital analyst Andrew Strelzik lowered the firm’s price target on Chipotle to $55 from $57 and keeps a Market Perform rating on the shares. The company’s Q2 earnings beat was driven by stronger comp growth and restaurant margins, but its June/July traffic trends have slowed and the second-half restaurant margins were guided below consensus as Chipotle expects margin pressures for the “next couple of quarters”, the analyst tells investors in a research note. Chipotle share price growth should be limited until visibility to stabilization improves, the firm added.