Chipotle Mexican Grill (NYSE: CMG): Rapid and Sustainable Recovery

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. News Wire & Equity Research: +31 084-0032-842

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