William Blair analyst Sharon Zackfia has maintained their bullish stance on CMG stock, giving a Buy rating yesterday.
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Sharon Zackfia’s rating is based on a combination of factors that suggest potential growth for Chipotle despite a challenging second quarter. Although the company is expected to experience a rare year-over-year decline in earnings per share, with projections slightly below consensus estimates, there are signs of improvement as the quarter progresses.
Notably, comparable store sales, which initially showed a decline, appear to be strengthening, particularly in July where they are believed to have returned to positive territory. This positive trend, along with the expectation of improved traffic in the third quarter, underpins Zackfia’s optimistic outlook for Chipotle, justifying the Buy rating.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $65.00 price target.
Based on the recent corporate insider activity of 78 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.