Chipotle (CMG – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst John Ivankoe from J.P. Morgan maintained a Hold rating on the stock and has a $58.00 price target.
John Ivankoe has given his Hold rating due to a combination of factors related to Chipotle’s recent performance and future projections. The company’s first-quarter 2025 comparable sales were below expectations, showing a decline of 0.4% compared to the anticipated growth of 2.6%. This underperformance, coupled with a projected further decline in the second quarter, raises concerns about the company’s ability to meet its growth targets.
Despite Chipotle’s confidence in improving sales through new product offerings and enhanced customer service, Ivankoe remains cautious. The aggressive assumptions about future growth, especially in light of the company’s unit expansion and the slowing industry growth rate, contribute to the Hold rating. Additionally, the valuation model, which includes a price target of $58 per share by December 2026, reflects a balanced view of potential risks and opportunities, supporting a neutral stance on the stock.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $52.00 price target.
Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CMG in relation to earlier this year.