Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Goldman Sachs has lowered its price target on Chipotle Mexican Grill (NYSE:CMG) to $45.00 from $52.00 while maintaining a Buy rating on the stock. The revised target comes as CMG trades at $39.76, down 34% year-to-date and significantly below its 52-week high of $66.74. According to InvestingPro data, the stock appears undervalued based on its Fair Value assessment.
The firm cited near-term inflationary headwinds and industry-wide macroeconomic pressures expected to impact traffic, particularly among Chipotle’s core younger and lower-income consumer segments earning less than $100,000. This aligns with InvestingPro data showing 15 analysts have revised their earnings downwards for the upcoming period, despite the company maintaining a "GOOD" overall financial health score.
Goldman Sachs noted that Chipotle management has expressed reservation about implementing price increases, with no immediate plans for incremental pricing in the fourth quarter despite rolling off 2% in December, as the company aims to maintain its value proposition amid consumer financial pressures.
The investment bank now forecasts same-store sales growth of -3.6% for Q4 2025, resulting in -1.9% for full-year 2025, followed by a more subdued recovery of 1.5% in 2026, down from its previous estimate of 3.3%.
Despite these short-term challenges, Goldman Sachs remains positive on Chipotle’s long-term growth story, citing the company’s commitment to culinary innovation with 3-4 protein limited-time offerings per year and its increased focus on operations, digital capabilities, and marketing through its "Recipe for Growth" strategy.
In other recent news, Chipotle Mexican Grill reported its third-quarter earnings for 2025, revealing mixed results. The company’s earnings per share met expectations at $0.29, aligning with analysts’ forecasts. However, revenue came in below projections, totaling $3 billion. Despite the revenue shortfall, the earnings per share performance was on target. These developments are part of the latest updates surrounding the company. Analyst firms have not provided any upgrades or downgrades in response to these results. The financial outcomes reflect the current state of Chipotle’s business operations. Investors are likely to consider these figures in their ongoing assessment of the company’s performance.
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