Deutsche Bank adds to the positive sell-side calls on Chipotle Mexican Grill (CMG +10.6%),...


Deutsche Bank adds to the positive sell-side calls on Chipotle Mexican Grill (CMG +10.6%), raising its price target to $345 from $330. Deutsche says CMG's Q1 margins were a "solid beat" but notes that the company seemed "more hesitant about raising prices" on this quarter's call, as management is apparently concerned with the "choppy macro" environment. DB's commentary is less sanguine than that of Credit Suisse and Northcoast which may explain why DB's new price target is the lowest of the group.

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  • lucagrs
    , contributor
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    seems to me CMG was helped in Q1 by US savings falling to compensate for payroll tax hike and the effect of sequestration which is playing out later in Q2 and Q3. US consumers cannot stop saving forever and economy could relapse into recession by then. Raising prices is unthinkable in 2013. changing consumer habits takes time but a retrenchment is a real possibility.
    19 Apr 2013, 02:54 PM Reply Like
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