Analysts at Evercore ISI have revised their price target for Chipotle Mexican Grill (NYSE:CMG), lowering it from $53.00 to $45.00. This adjustment, announced in a report on October 29, 2023, maintains an “outperform” rating for the restaurant chain, indicating a potential upside of approximately 42.08% from the stock’s previous close.
Several other research institutions have also weighed in on Chipotle’s stock. Melius, for instance, initiated coverage on July 14, 2023, assigning a “hold” rating with a target price of $60.00. Meanwhile, Guggenheim adjusted its target from $47.00 to $46.00, maintaining a “neutral” rating on July 25, 2023. On September 3, 2023, Rothschild & Co Redburn upgraded Chipotle from “neutral” to “buy,” establishing a target price of $55.00. Weiss Ratings reaffirmed a “hold (c)” rating on October 8, 2023, while Mizuho set a lower target price of $34.00 in their latest assessment.
The consensus among analysts indicates a positive outlook for Chipotle, with two analysts assigning a “Strong Buy” rating, twenty-two giving a “Buy” rating, and eleven labeling it as “Hold.” According to data from MarketBeat, Chipotle currently has a consensus rating of “Moderate Buy” and a price target averaging $49.81.
Recent Earnings and Financial Performance
On October 29, 2023, Chipotle reported its latest earnings, posting earnings per share (EPS) of $0.29, which matched analyst expectations. The company achieved a return on equity of 44.32% and a net margin of 13.04%. Revenue for the quarter reached $3 billion, although this fell short of analyst forecasts that had anticipated $3.06 billion. In comparison to the same quarter from the previous year, Chipotle’s quarterly revenue grew by 7.5%.
Looking ahead, analysts predict that Chipotle will generate an EPS of $1.29 for the current year, reflecting ongoing growth potential amidst a competitive landscape.
Institutional Investment Activity
Recent activity among institutional investors suggests a growing interest in Chipotle, with several hedge funds increasing their stakes. Notably, Operose Advisors LLC acquired a new position valued at approximately $25,000 during the second quarter. Signature Resources Capital Management LLC and Lavaca Capital LLC each made similar investments, also around $28,000. In the first quarter, Cloud Capital Management LLC purchased a new stake valued at about $25,000.
Additionally, Activest Wealth Management significantly boosted its holdings in Chipotle by 109.3%, now owning 517 shares worth approximately $29,000 after acquiring an additional 270 shares. Currently, institutional investors own 91.30% of Chipotle’s stock, reflecting strong support from large financial entities.
Chipotle Mexican Grill operates restaurants in the United States, Canada, France, Germany, and the United Kingdom, offering a menu that includes burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery services through its app and website, aiming to enhance customer convenience and reach.
As Chipotle continues to navigate the challenges of the fast-casual dining sector, its financial performance and shifting analyst ratings will be watched closely by investors and market analysts alike.
