- BMO Capital warns of a slump in Chipotle's (NYSE:CMG) share price even though it forecasts only a short-time impact on traffic from the E. coli scare.
- "Recognizing the uncertainties, however, we derive 10% downside to CMG’s stock to $475 in a low-case scenario," reads the note from analyst Andrew Srelzik.
- Telsey Advisory Group upgraded shares to Outperform after watching Chipotle fall back. The investment firm still expects a positive Q4 comp unless the outbreak broadens.
- Maxim Group takes a more bearish view, forecasting a traffic impact over a few quarters due to hit to the brand's reputation. "We now expect that the outbreak could reduce comps by as much as 330 basis points in 4Q15, 120 basis points in 1Q16 and 40 basis points in 2Q16," writes analyst Stephen Anderson.
- Current CMG scorecard from Wall Street firms: 19 Buy ratings, 10 Hold ratings, 1 Sell rating (from BAML).
- CMG -0.33% premarket to $557.39. Shares are down roughly 15% since the first report of E. coli linked to the chain's stores.