Chipotle upgraded to Outperform from Neutral at Mizuho

Mizuho upgraded Chipotle (CMG) to Outperform from Neutral with a price target of $40, up from $37. The firm sees a comp “inflection” for Chipotle in the near-term along with incremental margin visibility. The company’s Q1 earnings report and Q2-to-date commentary offer potential positive catalysts, the analyst tells investors in a research note. Citing its strong channel checks, Mizuho upped Chipotle’s Q1 same-store-sales growth estimate to 0.0% from negative 0.4, above the consensus of negative 1.1%. Importantly, trends strengthened as the quarter progressed, pointing to Q2 traffic and comp upside, adds the firm. The analyst expects Chipotle’s sales to accelerate as 2026 progresses with easier compares ahead and says the company’s cycle of lower margin revisions is almost at an end. It finds the stock’s valuation as “overly pessimistic.”