Schaeffer's Trading Floor Blog

Analyst Upgrades: Chipotle Mexican Grill, Inc., Netflix, Inc., and Texas Instruments Incorporated

Analysts upwardly revised their ratings on CMG, NFLX, and TXN

by 7/22/2014 8:59 AM
Stocks quoted in this article:

Analysts are weighing in today on fast-casual restaurateur Chipotle Mexican Grill, Inc. (NYSE:CMG), streaming video provider Netflix, Inc. (NASDAQ:NFLX), and semiconductor concern Texas Instruments Incorporated (NASDAQ:TXN), which all stepped into the earnings confessional last night. Here's a quick roundup of today's bullish brokerage notes.

  • CMG said second-quarter profit rose almost 26% to $3.50 per share, while revenue surged a year-over-year 29% to $1.05 billion, topping expectations. Furthermore, the company saw same-store sales rally 17.3%, as traffic increased in spite of higher menu prices, and lifted its forecast for current-quarter same-store sales growth. As such, Chipotle Mexican Grill, Inc. scored a bevy of upbeat analyst attention, with no fewer than 13 brokerage firms hiking their price targets. Among them were Barclays and Baird, which lifted their targets to $690 and $800, respectively. After closing at $589.93 on Monday, the shares of CMG are pointed more than 10% higher ahead of the bell, and could surge into record-high territory north of $650.

  • NFLX said its second-quarter profit more than doubled from the year-ago period, to $1.15 per share, as the number of global subscribers topped 50 million for the first time. Revenue rose to $1.34 billion from $1.07 billion. The results were roughly in line with expectations for a per-share profit of $1.16 on sales of $1.34 billion. On the analyst front, no fewer than 12 brokerage firms lifted their price targets on NFLX, including J.P. Morgan Securities, which hiked its outlook to $550 from $500. However, Netflix, Inc. shares have lost some steam in pre-market action, after the company increased its monthly rate by $1 for new subscribers. At last check, NFLX -- which settled Monday at $451.95 -- is pointed 1% lower.

  • Finally, TXN reported stronger-than-expected per-share earnings for the second quarter, and said revenue rose 8% to $3.3 billion -- in line with the Street's consensus estimate. In addition, Texas Instruments Incorporated hiked its third-quarter sales forecast, citing improving demand for chips in the automotive industry. As such, Jefferies and Deutsche Bank were among the handful of brokerage firms to upwardly revise their price targets on the stock, to $60 and $45, respectively. Nevertheless, the low end of the company's third-quarter outlook is well below the consensus estimate, and TXN is poised to drop 0.8% out of the gate, after settling at $49.17 on Monday.

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