Analyst Brian Harbour from Morgan Stanley maintained a Hold rating on Chipotle (CMG – Research Report) and keeping the price target at $65.00.
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Brian Harbour’s rating is based on the current challenges and potential opportunities facing Chipotle. In the short term, Chipotle is experiencing slower comparable sales and margin pressure, which could weigh on the stock. However, these issues appear to be temporary and not enough to dissuade long-term investors. While the first half of the year may present some headwinds, the latter half shows promise for improvement.
Key factors such as limited-time offers, marketing, and operational changes continue to be strong drivers for Chipotle. The company’s strategic moves, including potential improvements in automation and pricing advantages, are expected to positively impact profitability in the long run. Despite a modest downward revision in estimates, Chipotle’s fundamental strengths remain intact, maintaining investor interest and justifying a Hold rating.
Harbour covers the Consumer Cyclical sector, focusing on stocks such as Brinker International, Chipotle, and Jack In The Box. According to TipRanks, Harbour has an average return of -0.1% and a 53.21% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $60.00 price target.