Chipotle Mexican Grill Retail Traders See It As A Safe Bet Amid Analyst Upgrade

 Shares of Chipotle Mexican Grill Inc. (CMG) rose 2.7% on Friday after the fast-food chain received an analyst upgrade, and retail sentiment remained upbeat.

Loop Capital analyst Alton Stump upgraded Chipotle to ‘Buy’ from ‘Neutral’ with a price target of $65, up from $58, The Fly reported.  

According to the brokerage, Choptle has an attractive buying opportunity following the company’s assessment of "understandably choppy" comps in the current quarter due to unfavorable weather conditions, said the report.

Additionally, there was a minimum 7% to 8% upside to the 2025 consensus earnings per share (EPS) estimates of $1.30 if comparable sales continue to surpass expectations moving forward this year, added the report.

The upgrade follows Morgan Stanley’s 'overweight' revision from 'equal weight' last month that had a price target of $70, increased from $65, terming the chain a "quality large-cap growth compounder."

Sentiment on Stocktwits ended Friday firmly in the 'bullish' zone with message volume rising in the 'normal' category.

One watcher thinks the company is “the safest bet” with its no debt position.

https://stocktwits.com/Universaal/message/608110874

Another watcher is hopeful of positive cues this week and the company breaking the downtrend.

https://stocktwits.com/BigCheeseSayPlease/message/608177983

One user suggested that institutions rushing in recently made it a good time to buy the stock.

https://stocktwits.com/Universaal/message/608128840

In February, Citi reportedly placed Chipotle on a "90-day positive catalyst watch" with a 'buy' rating on the shares and a $70 price target, citing the company’s new honey chicken limited-time offer as a positive traffic and sales catalyst.

Chipotle posted better-than-expected fourth-quarter earnings in February.

​​Chipotle stock is down 17% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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