Chipotle price target raised to $3,400 from $2,900 at TD Securities

TD Securities raised the firm’s price target on Chipotle (CMG) to $3,400 from $2,900 and keeps a Buy rating on the shares. The firm expects a “clean” Q1 report from Chipotle and raised Q1 same-store-sales estimate to 4.5% from 3.5%, in-line with consensus. A panel of casual dining executives suggests a favorable Q1 for fast casual sales and the margin environment, which increases TD’s conviction in the sub-sector, the analyst tells investors in a research note. At current valuation levels, the firm sees a greater importance on raising 2024 adjusted EBITDA guidance to sustain the recent runs. TD has greatest confidence this will be done at Shake Shack (SHAK), Sweetgreen (SG) and Cava Group (CAVA).