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Investing.com - TD Cowen has reduced its price target on Chipotle Mexican Grill (NYSE:CMG) to $58.00 from $61.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week low, with a market capitalization of $61.33 billion and a P/E ratio of 39.56.
The adjustment comes as TD Cowen acknowledges a more challenging sales environment for Chipotle in 2025 than previously anticipated, with the firm lowering its same-store sales growth guidance to flat from low-single-digit percentage growth. Despite these challenges, InvestingPro analysis shows the company maintains strong financial health with a current ratio of 1.65 and achieved revenue growth of 8.57% over the last twelve months.
According to TD Cowen, Chipotle will need to implement specific initiatives in marketing, menu innovation, and loyalty programs to achieve its targeted 8% two-year sales trend, rather than relying on the base business to maintain this performance through quarters 2-4 of 2025.
The research firm now views sales beats in the second half of 2025 as less likely for the Mexican-inspired restaurant chain given the revised outlook.
TD Cowen suggests that Chipotle stock may regain momentum when the company’s ability to return to mid-single-digit percentage same-store sales growth in 2026 becomes more credible to investors.
In other recent news, Chipotle Mexican Grill reported disappointing second-quarter earnings, with same-store sales declining by 4%, missing analyst expectations. RBC Capital responded by lowering its price target for Chipotle to $58, citing macroeconomic volatility and consumer sentiment as contributing factors. Despite these challenges, UBS maintained its Buy rating and a price target of $65, noting some improvement in same-store sales and transaction growth by the end of the quarter. Piper Sandler adjusted its price target slightly upward to $53, maintaining a Neutral rating, following the company’s underperformance relative to consensus estimates. Chipotle’s management also revised its full-year same-store sales guidance to flat, down from the previously projected low-single-digit growth. Bernstein continues to rate the stock as Outperform despite the earnings miss. Bank of America Securities reaffirmed its Buy rating with a price target of $64, based on long-term growth projections, including an expanded restaurant footprint. These developments highlight the varied analyst perspectives on Chipotle’s current financial situation and future potential.
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