Why Are Analysts So Bullish About Chipotle Stock?

Chipotle stock is trading in the green today after Wedbush analyst Nick Setyan raised his price target for the stock to $1,600 from $1,320.

The analyst said that Chipotle’s August same-store sales growth increased by "very high single-digits" as compared to the July’s same-store sales growth of 6.4%. The analyst said in his note that Chipotle’s growth is the result of its focus on digital sales and delivery operations. Setyan said the company is on track to touch pre-COVID levels of growth.

Setyan reiterated a buy rating for Chipotle stock.

Strong Same-Store Sales

On September 1, investment firm Stifel’s analyst Chris O'Cull also raised his price target for Chipotle stock to $1,400 from $1,100 and reiterated a Hold rating. O’Cull also increased his Q3 same-restaurant-sales projections for the company based on mobile location data. This data, according to the analyst, shows that Chipotle is on track to report "solidly positive" comparable sales growth in the third quarter.

The analyst also believes that Chipotle’s valuation is reasonable, and that the company has performed above expectations during the challenging period of the coronavirus.

Last month, Bernstein also raised its price target for Chipotle to $1,600 per share from $1,300. The investment firm cited mobile orders for their bullish outlook.