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Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $40.00 price target on Chipotle Mexican Grill (NYSE:CMG) despite investor concerns about the company’s growth potential. This target aligns with InvestingPro analysis, which suggests the stock is currently undervalued, despite trading down nearly 50% year-to-date.
The research firm addressed worries that Chipotle’s traffic compression in 2025 indicates structural maturity, which could prevent the restaurant chain from reaching its long-term goal of 7,500 stores in North America. These concerns come as the stock has fallen significantly, now trading near its 52-week low of $29.75.
Bernstein updated its total addressable market (TAM) analysis and concluded that Chipotle’s store potential remains intact, countering bear cases suggesting the company needs to close locations or slow expansion.
The firm believes Chipotle’s current challenges are likely cyclical rather than structural and noted the company has "untapped levers" to grow traffic at low single digits in a normalized environment.
Despite maintaining the positive rating, Bernstein expects Chipotle stock to remain range-bound in the high $20s to low $30s until management demonstrates its ability to boost traffic amid the current economic backdrop.
In other recent news, Computer Modelling Group Ltd. announced a quarterly cash dividend of $0.01 per common share for the second quarter ended September 30, 2025. The company reported a 2% increase in total revenue to $30.2 million, with recurring revenue rising 13% to $20.7 million. However, adjusted EBITDA decreased by 25% to $7.6 million, and earnings per share dropped 40% to $0.03, reflecting a challenging financial environment.
Meanwhile, Chipotle Mexican Grill has seen several analysts adjust their stock price targets following its third-quarter results. UBS lowered its price target to $45 from $56, maintaining a Buy rating, citing ongoing macroeconomic pressures affecting same-store sales and margins. Truist Securities also reduced its price target to $45 from $53, maintaining a Buy rating, noting that same-store sales missed expectations. BMO Capital adjusted its target to $55 from $65, citing margin pressure despite in-line earnings per share. RBC Capital further lowered its target to $40 from $58, highlighting intensified macroeconomic headwinds and a shift in consumer preferences towards eating at home.
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