Chipotle price target lowered to $55 from $60 at Wells Fargo

Wells Fargo analyst Zachary Fadem lowered the firm’s price target on Chipotle (CMG) to $55 from $60 and keeps an Overweight rating on the shares. The firm notes Q2 EPS was a disaster, demand has slowed since, and the group can’t shake a narrative of too much price, low-income exposure and “race to the bottom” promo. But the short restaurant call is crowded, Q3 misses are priced in, and estimates are already moving lower. Starting to look at 2026, sentiment should improve into easy first half of the year compares and potential stimulus benefits, Wells says. Bad narrative aside, the firm takes the contrarian long side of the trade into Q3.