Seeking Alpha

Analysis: Chipotle to $500 and beyond

  • Sterne Agee raises its price target on Chipotle (CMG) to $507 right in the front of the company's Q3 earnings report.
  • It's a somewhat bold call with the restaurant sector having a disappointing start to the earnings season.
  • CMG +0.8% premarket to $436.99.
Comments (2)
  • Bandwidth Hog
    , contributor
    Comments (16) | Send Message
     
    But Einhorn, a billionaire who has probably never eaten anything not prepared by a team of personal chefs, just told me to short because of something about Taco Bell.
    16 Oct 2013, 09:20 AM Reply Like
  • wrynot
    , contributor
    Comments (180) | Send Message
     
    Einhorn's tone deaf with comparisons to Taco Bell...having said that, it is a hyper-competitive sector, and consumer tastes...change. The market seems to be assuming the Chop House concept will immediately double CMG's earnings, and that is far from certain, as is the growth. And at almost 2x PEG, this is priced for perfection.
    Short CMG calls.
    16 Oct 2013, 10:17 AM Reply Like
DJIA (DIA) S&P 500 (SPY)