TD Cowen analysts raised the price target on Outperform-rated Chipotle Mexican Grill (NYSE:CMG) to $2,350 from $2,200 per share in a note Friday, stating that the firm is confident in the company's strategy.
Analysts explained that TD Cowen hosted a Newport Beach, CA HQ visit with CMG CEO Brian Niccol, CFO Jack Hartung, and Head of IR and Strategy Cindy Olsen.
"We are confident CMG's multi-pronged strategy will drive share gains, while Project Square One is in early innings & we estimate can ultimately unlock ~500 bps of traffic growth," analysts wrote.
The firm also highlighted proprietary survey data that suggests superior fast-casual value perceptions and CMG's 2008-09 share gains vs peers. In addition, they noted that "the class of 2022 openings' unit economics outperformed the class of 2021."
"Chipotle remains a Top 3 pick, with confidence in same-store sales & development execution, both in the near & long term as management has streamlined the organizational focus on driving results," said analysts.