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A pullback in this restaurant stock is overdone, Loop Capital says in upgrade

Chaim Potok by Chaim Potok
March 14, 2025
in Investing
A pullback in this restaurant stock is overdone, Loop Capital says in upgrade
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A buying opportunity in Chipotle Mexican Grill has emerged, according to Loop Capital. The firm upgraded stock in the restaurant chain to buy from hold. Its alongside a $65 per share price target. Loop’s forecast calls for more than 33% upside from Thursday’s close. Shares have struggled in 2025, losing more than 19% in that time. This month alone, shares are down around 10%, “which we believe has created an attractive buying opportunity for investors,” said analyst Alton Stump. CMG YTD mountain Chipotle stock in 2025. Stump also thinks “there is the potential for at least 7.0-8.0% upside to the current consensus EPS [earnings per share] estimate of $1.30 for 2025 in the event comparable sales continue to beat expectations over the course of the current year.” He added that Chipotle could be a good way to ride out risk associated with President Donald Trump’s tariffs, which have pressured U.S. equities in recent days and worried investors that the economy could be heading for a recession. “Chipotle has a very manageable risk to the recent escalating tariff situation since CMG sources only ~2% of its total inputs from Mexico, mainly including avocados,” Stump said. “To this end, over the last couple of years the company shifted a significant portion of supply to other Latin American countries and currently sources approximately one-half of its avocados outside of Mexico.” Chipotle shares are widely liked by analysts. Of the 36 who cover the stock, 27 have a buy or strong buy rating on it, according to LSEG. The average price target also implies upside of 35%.



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