Raymond James analysts reiterated an Outperform rating on Chipotle Mexican Grill (NYSE:CMG) in a note Tuesday, raising the price target to $2,300 per share from $2,100.
Last week, the firm hosted a virtual investor call with Chipotle’s CFO Jack Hartung and Head of IR and Strategy Cindy Olsen, giving the impression to Raymond James that demand trends remain strong.
"While near-term trends were not discussed, our sense is that underlying demand trends remain strong and that it has not seen a material change in consumer frequency/behavior," wrote the analysts.
"CMG shares have been strong YTD (+47%), and we believe can continue to Outperform given strong comp momentum, accelerating unit growth and best-in-class unit economics, and potential upside to 2024 estimates. As such, we are raising our price target to $2,300," they added.
The analysts concluded that they also believe the company's 2024 "consensus comps up in the mid-4s could prove conservative unless macro conditions deteriorate further."
"While uncertainty remains from a macro perspective, we believe Chipotle’s strong brand positioning (consumer favorite) and value proposition position it well to outperform/gain share in a softer macro environment."