It seems Chipotle Mexican Grill (NYSE: CMG) has finally started a recovery after being battered for almost eighteen months amid the 2015 E.coli problem. The company’s revenue increased by over 28% in the first quarter on year-over-year basis. The Mexican food chain needs to grow its sales by 12% sequentially to reach the pre-E.coli outbreak levels. This isn’t an impossible target to achieve, as Chipotle Mexican Grill (NYSE: CMG)’s average sales growth in the second quarter over the last five years is 13%.
After the first quarter results, investment firm Piper Jaffray upped its price target of Chipotle Mexican Grill (NYSE: CMG) to $530 from $483. Deutsche Bank also increased its price target on the stock to $300 from $280. However, the bank has a “Sell” rating on the stock.
ValueSpectrum.com News Wire & Equity Research: +31 084-0032-842
Copyright analist.nl B.V.
All rights reserved. Any redistribution, duplication or archiving prohibited. analist.nl doesn't warrant the accuracy of any News Content provided and shall not be liable for any errors, inaccuracies or for any actions taken in reliance thereon.