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Investing.com - TD Cowen has raised its price target on Chipotle Mexican Grill (NYSE:CMG) to $61.00 from $57.00 while maintaining a Buy rating ahead of the company’s second-quarter earnings report, scheduled for July 23. According to InvestingPro data, the stock currently trades at a P/E ratio of 45.3x, reflecting its premium valuation status.
The investment firm expects Chipotle’s second-quarter results to be largely in-line with consensus estimates and company guidance, with little change anticipated in management’s commentary for the remainder of 2025. The company maintains strong financial health with a current ratio of 1.52 and has demonstrated solid revenue growth of 12.57% over the last twelve months.
TD Cowen cited data from Bloomberg Second Measure and Placer suggesting that Chipotle’s two-year sales trends either remained steady or accelerated in May and June compared to April, supporting the firm’s second-quarter same-store sales estimates of approximately -3.0%.
For the full year 2025, the analyst expects Chipotle to maintain its low-single-digit same-store sales growth guidance, likely in the 0% to 1% range, with management messaging a return to mid-single-digit comparable sales in 2026.
The higher price target is based on Chipotle’s five-year average forward price-to-earnings multiple of 37.8x, justified by confidence in returning to positive traffic in the second half of 2025, sustained new store economics through Chipotlane locations, consistent 8%-10% annual new store development, and the company’s position as a scarce large-cap consumer growth opportunity. The company maintains a strong market position with a market capitalization of $70 billion and healthy gross profit margins of 40.28%.
In other recent news, Chipotle Mexican Grill has been the focus of several analyst updates. UBS has raised its price target for Chipotle to $65, maintaining a Buy rating, as they anticipate that the company’s second-quarter same-store sales will align with consensus estimates of approximately -2.9%. RBC Capital also increased its price target to $65, noting the success of Chipotle’s honey chicken offering, which could positively impact second-quarter expectations. Citi has gone further, setting a new price target of $68, while maintaining a Buy rating, as they foresee the second quarter as a turning point for Chipotle’s sales and traffic. KeyBanc has adjusted its price target to $60, maintaining an Overweight rating, citing improved investor sentiment and better performance expectations for July. Melius Research initiated coverage with a Hold rating and a $60 price target, acknowledging Chipotle’s strong execution and industry-leading margins. These developments highlight a range of expectations from analysts regarding Chipotle’s performance in the near term.
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