Chipotle price target raised to $36 from $34 at Mizuho

Mizuho raised the firm’s price target on Chipotle (CMG) to $36 from $34 and keeps a Neutral rating on the shares. The company is “appropriately” investing in price to reignite transaction growth, the analyst tells investors in a research note. The firm says the move lower risk to Chipotle’s Q4 same-store-sales growth estimates but elevates risk to its restaurant-level margins. Mizuho believes the stock’s current valuation appropriately reflects the company’s new long-term EBITDA growth algorithm of mid-teens. Channel checks suggest in-line Q4 comps as Chipotle’s “unprecedented promotional cadence and a slight price increase limit downside risk,” the firm contends.