Key Takeaways:
- Argus downgrades Chipotle due to increasing operational costs and potential sales impact.
- Analysts forecast an attractive upside potential for Chipotle Mexican Grill stock.
- Current broker recommendations indicate a generally positive outlook on Chipotle.
Argus has revised its rating for Chipotle Mexican Grill (CMG, Financial) from "Buy" to "Hold." This adjustment reflects concerns over escalating costs, including avocados and chicken, alongside rising wages and location expenses. These financial pressures, coupled with increased menu prices and diminishing consumer confidence, are contributing to a less optimistic projection for the company's sales growth and profit potential.
Wall Street Analysts Forecast
In the analysis provided by 31 Wall Street experts, Chipotle Mexican Grill Inc (CMG, Financial) is projected to reach an average target price of $59.00 over the next year. This forecast includes a high estimate of $73.00 and a low of $46.12, implying a potential upside of 13.95% from its current trading price of $51.78. Explore further insights on these projections on the Chipotle Mexican Grill Inc (CMG) Forecast page.
From the perspective of 36 brokerage firms, Chipotle Mexican Grill Inc (CMG, Financial) secures an average recommendation of 1.8, which is characterized as "Outperform." The rating metric ranges between 1 (Strong Buy) to 5 (Sell), suggesting a generally favorable view from the analyst community.
According to GuruFocus evaluations, the projected GF Value for Chipotle Mexican Grill Inc within the next year is anticipated to be $59.97, indicating a 15.82% upside from the present price of $51.78. The GF Value represents an estimate of what the stock's fair market value should be, rooted in its historical trading multiples, former business growth, and prospective performance. For a deeper dive into these figures, the Chipotle Mexican Grill Inc (CMG, Financial) Summary page is available.
