BMO Capital Upgrades Chipotle Mexican Grill to "Outperform" with Revised Price Target of $65.00

Chipotle Mexican Grill (CMG) has been upgraded by BMO Capital to "Outperform" with a revised price target of $65.00, a 16.07% increase from the prior target of $56.00. The upgrade reflects growing confidence in the company's market position and future growth prospects. The average analyst price target for CMG is $59.97 with a high estimate of $73.00 and a low estimate of $45.94.

Chipotle Mexican Grill (CMG) has been upgraded by BMO Capital to "Outperform" with a revised price target of $65.00, a 16.07% increase from the prior target of $56.00. The upgrade reflects growing confidence in the company's market position and future growth prospects. The average analyst price target for CMG is $59.97 with a high estimate of $73.00 and a low estimate of $45.94.

Despite anticipated declining comparable store sales and compressed margins in the current quarter, BMO Capital expects Chipotle to experience accelerated growth in comparable sales and improved margins starting in the latter half of 2025. This optimistic outlook is based on confidence in Chipotle's future performance despite current challenges.

Wall Street analysts forecast a consensus price target of $61.41, with a range of $45.94 to $73.00. The average target price implies an upside of 12.00% from the current price of $53.54. Additionally, the average brokerage recommendation is "Outperform," indicating strong investor sentiment towards the company's stock.

Chipotle's recent earnings report highlighted several key developments. The company reported $2.9 billion in revenue for the first quarter, representing a 6% year-over-year growth. Comparable sales declined by 0.4%, and digital sales represented 35.4% of total sales. The company opened 57 new restaurants, with plans to open between 315 and 345 new restaurants this year. Despite the challenges, Chipotle maintains a strong balance sheet with $2.1 billion in cash and no debt.

In addition to the BMO Capital upgrade, several other research firms have revised their price targets for Chipotle. Raymond James Financial raised its target to $62.00, indicating a potential upside of 15.57%. Morgan Stanley reduced its target to $65.00, and KeyCorp raised its target to $60.00. Evercore ISI reduced its target to $57.00, while Barclays raised its target to $55.00. Redburn Atlantic started coverage with a neutral rating and a $55.00 target price.

Chipotle faces headwinds from inflation and higher usage costs, particularly in avocados, dairy, and chicken. However, the company's strong balance sheet and focus on innovation position it well for future growth. Investors should closely monitor Chipotle's ability to navigate these challenges and capitalize on its growth opportunities.

References:
[1] https://www.gurufocus.com/news/2986979/chipotle-cmg-receives-upgrade-from-bmo-capital-with-increased-price-target-cmg-stock-news
[2] https://www.marketbeat.com/instant-alerts/chipotle-mexican-grill-nysecmg-price-target-raised-to-6200-at-raymond-james-financial-2025-07-17/