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Chipotle Mexican Grill (CMG): Not If But When - Piper Jaffray

July 22, 2016 7:46 AM EDT
Get Alerts CMG Hot Sheet
Price: $2,773.53 +0.62%

Rating Summary:
    32 Buy, 14 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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Piper Jaffray analyst, Nicole Miller Regan, reiterated her Overweight rating on shares of Chipotle Mexican Grill (NYSE: CMG) after the company reported 2Q16 results that included EPS of $0.87 and same-store sales of (23.6%), which were a touch below printed expectations for the quarter. That said, she was encouraged to hear that trends thus far in July have improved sequentially to (21%) with traffic of (15%). It remains early in the company's turnaround but she believes in the opportunity for ongoing improvement over the course of the year. Further, she sees leverage as a discussion of "when" (not "if") trends improve. She has adjusted FY17 estimates down slightly but still sees an opportunity for $20 in earnings power by FY18.

No change to $590 price target on CMG shares based on ~20x our FY17E EV/ EBITDA.

For an analyst ratings summary and ratings history on Chipotle Mexican Grill click here. For more ratings news on Chipotle Mexican Grill click here.

Shares of Chipotle Mexican Grill closed at $418.07 yesterday.



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