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Investing.com - Citi has reduced its price target on Chipotle Mexican Grill (NYSE:CMG) to $62.00 from $68.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock currently trades at a P/E ratio of 45.9x, with analyst targets ranging from $45.94 to $70.00.
The price target adjustment comes as Chipotle faces what Citi describes as near-term bearish narratives, particularly regarding management’s expectations for second-half improvement tied to better macroeconomic conditions and fewer lower-income customer disruptions.
Citi notes that Chipotle’s current valuation at 35x next-twelve-months price-to-earnings ratio, which is 1.5x the S&P and more than two standard deviations below its five-year average, likely keeps longer-term investors interested in the stock.
The research firm points out that the second quarter represented Chipotle’s toughest comparison for 2024 market share gains, suggesting potential improvement in coming quarters.
Citi believes Chipotle is building and increasingly deploying marketing and innovation tools that will drive growing confidence in a more stable same-store sales trajectory into the second half of 2024 and beyond.
In other recent news, Chipotle Mexican Grill announced its second-quarter 2025 earnings, revealing a modest earnings per share (EPS) beat. The company reported an actual EPS of $0.33, slightly surpassing the forecast of $0.32. However, revenue for the quarter was $3.1 billion, which fell just below the expected $3.11 billion. Despite the revenue miss, the earnings report reflects cautious optimism among investors. These developments are part of the latest financial performance updates from Chipotle. The slight beat in EPS indicates that the company is managing its profitability effectively. Investors and analysts alike will be watching closely for any further updates.
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