Shares of Chipotle Mexican Grill Inc. (CMG) shot up 3.8% toward a sixth-straight record close in afternoon trading Tuesday, after Wedbush analyst Nick Setyan boosted his price target enough to make him Wall Street's most bullish analyst. Setyan reiterated the outperform rating he's had on the fast-casual Mexican food restaurant chain since September 2019, while raising his price target to $1,600 from $1,320. That's now the highest target of the 35 analysts surveyed by FactSet, well above Piper Sandler analyst Nicole Miller Regan's now second-place target of $1,450. Setyan said recent checks suggest August same-store sales growth has accelerated towards at least the "very high single-digits" percentages from July's 6.4% rise, driven primarily by growth in digital and delivery orders. "We believe [Chipotle] is poised to see accelerated market share gains in a post-COVID environment, resulting in sustained growth above pre-COVID levels and an expanding premium relative to its pre-COVID valuation," Setyan wrote in a note to clients. The stock has climbed 9.6% during its six-day win streak, while the SPDR Consumer Discretionary Select Sector ETF (XLY) has advanced 2.0% and the S&P 500 has gained 2.5% over the same time.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 01, 2020 14:53 ET (18:53 GMT)
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