This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXNPEB7O0PO_M.jpg
Investing.com – Chipotle Mexican Grill (NYSE:CMG) shares rose 3% Thursday after UBS upgraded the stock to buy with a $1,700 target, citing attractive valuations and multi-year growth opportunities.
The stock is still some 15% off the year’s high, making analyst Dennis Geiger’s latest target 26% higher than its current level of $1,346.
Geiger’s previous neutral rating carried a $1,575 target. He sees both near- and long-term catalysts for the stock.
He sees support for the stock from a rise in consumer mobility and digital sales remaining strong. Upcoming price increases and the contribution from new product launches and loyalty programs will help in the short-term, he said.
“Biggest opportunities to close the gap over time are from: more pricing on delivery menu and broader menu, shift from delivery to digital order ahead, product mix, supply chain savings, labor efficiencies, and Chipotlanes,” the senior research analyst wrote in his note.
Unit growth and international expansion are among the several long-term drivers on Geiger’s list of reasons behind his optimism on the stock.
