New 52-week High for Chipotle Mexican Grill (CMG)
Holy Burritos Batman! Chipotle Mexican Grill, Inc. (NYSE:CMG) are almost $100 per share. Chipotle shares touched a new 52-week high of $99.71 before backing down to $99.35 heading into the close. Still, shares are almost at the precious $100 level and the party could just be getting started thanks to Wells Fargo (NYSE:WFC).
(theStockMasters.com) Wells Fargo (WFC) upgraded Chipotle Mexican Grill (CMG) shares today to "Market Perform" from "Underperform" and putting a $92 to $100 target price on the magic burrito.
Chipotle has been on fire lately and the analysts are loving the company, last week Morgan Stanley double upgraded Chipotle Mexican Grill (CMG) shares to Overweight from Underweight while raising their target to $111.
Specific reasons they would own this stock in 2010:
(iStockAnalyst.com) 1) CMG will be the leading restaurant growth stock of any meaningful market cap, based on firm's work only 40% saturated in the US, with the ability to at least double and perhaps triple its current store base. That growth potential, combined its current rate of growth should command a valuation commensurate with that superior growth; today it does not
2) 2010 EPS consensus is too low by ~10% just holding current margins flat
- CMG has more pricing power than investors believe and will use that to defend margins in 2010;
- SSS, specifically traffic, are poised to rebound with the economy, easier comparisons and company-specific drivers such as the introduction of kids meals and easier to navigate menu boards.
Pricing survey and store saturation analysis highlight opportunities.
Gitty up Masters, time to go eat a burrito and get your classic Batman on!