Chipotle stock price target lowered to $59 by Morgan Stanley on softer Q3

Investing.com - Morgan Stanley has lowered its price target on Chipotle Mexican Grill (NYSE:CMG) to $59.00 from $65.00 while maintaining an Overweight rating on the stock. The stock currently trades at $42.1, with a market capitalization of $56.45 billion and a P/E ratio of 37.45.

The price target reduction comes as Morgan Stanley anticipates a softer third quarter performance from the fast-casual restaurant chain, noting that the exit rate has been slower than expected. Investors should note that Chipotle’s next earnings report is scheduled for October 29, 2025.

The firm indicated that this slowdown was anticipated and is not worse than what Chipotle’s peers have experienced in the current market environment.

Morgan Stanley suggested that a recalibration of estimates is appropriate for both the second half of this year and for 2026, though the firm believes the risk-reward profile remains attractive at current levels.

The research note highlighted that potential drivers in 2026 could become sources of upside for Chipotle, supporting the firm’s decision to maintain its Overweight rating despite the reduced price target.

In other recent news, Chipotle Mexican Grill announced a significant development with the authorization of an additional $500 million for its share repurchase program, bringing the total available for buybacks to approximately $750 million. This move was approved by the company’s Board of Directors and disclosed in an SEC filing. Meanwhile, analysts have made adjustments to their evaluations of Chipotle. Bernstein SocGen Group lowered its price target from $65.00 to $60.00, citing macroeconomic pressures and a weakening labor market, while maintaining an Outperform rating. Similarly, Stifel reduced its price target to $60.00 from $65.00 and maintained a Buy rating, noting that third-quarter comparable sales are tracking below the expected 1.9%. Stephens maintained its Equal Weight rating with a $60.00 price target ahead of Chipotle’s introduction of a new Red Chimichurri sauce in U.S. and Canada locations. This sauce features ingredients like roasted garlic, cilantro, chili peppers, and citrus, prepared daily in restaurants. Additionally, Computer Modelling Group Ltd. held its annual meeting where all seven director nominees were elected, with Birgit Troy receiving the highest approval rate of 99.87%.

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