Chipotle Mexican Grill got a hike in price target from an analyst that was impressed with the casual restaurant chain’s new menu lineup.
Telsey Advisory Group boosted its price target on the Mexican cuisine chain's stock to $800 a share from $750, according to published reports.
Telsey hopes that Chipotle’s new menu items will boost both sales and profits, by incentivizing customers to dine more often and also bolster Chipotle’s digital sales and operating momentum.
But Telsey’s note also included a caveat. Analyst Robert Derrington cited the stock’s "frothy valuation" as a factor behind Telsey reiterating its market perform rating on the shares (versus raising the rating). (according to published reports).
Nevertheless, the Telsey analyst seems sanguine that Chipotle is on solid footing at present, and that it is poised to grab market share from what the analyst perceives as weaker fast food and casual dining chains.