Analyst Update: Chipotle Mexican Grill, Inc., Panera Bread Co, and NVIDIA Corporation

Analysts revised their ratings and price targets on Chipotle Mexican Grill, Inc. (NYSE:CMG), Panera Bread Co (NASDAQ:PNRA), and NVIDIA Corporation (NASDAQ:NVDA)

by Josh Selway

Published on Jul 26, 2016 at 2:36 PM

Analysts are weighing in on restaurant stocks Chipotle Mexican Grill, Inc. (NYSE:CMG), and Panera Bread Co (NASDAQ:PNRA), as well as chipmaker NVIDIA Corporation (NASDAQ:NVDA)Here's a quick roundup of today's brokerage notes on CMG, PNRA, and NVDA. 

  • CMG is getting hammered by disappointing earnings from one sector peer and a bearish note at Stifel, which not only downgraded the stock to "sell" from "hold," but turned bearish on the entire restaurant sector. According to the brokerage firm, the U.S. economy is likely headed toward a recession by 2017, and "restaurants have historically led the market lower during pre-recessionary periods." Chipotle Mexican Grill, Inc. has lost 2.5% as a result to trade at $430.65, bringing its 12-month loss to 41%. Short sellers have flocked to the stock in the meantime, with close to 16% of CMG's float now sold short. 
  • PNRA also fell victim to Stifel's wrath, with the brokerage firm downgrading the stock to "sell" from "hold." With earnings scheduled for after the close today, the shares are off 4.7% at $206.70, but staying in the $204-$220 range they've traded in since late February. Longer term, Panera Bread Co has been fantastic, gaining 25% since hitting an annual low of $165.17 in mid-November. Meanwhile, most analysts are upbeat, with 14 of 21 maintaining a "buy" or better rating.
  • NVDA hit yet another record high earlier at $56.92, and was last seen 1.7% higher at $56.62, following a price-target hike to $64.50 from $58 at B. Riley. The stock has now outpaced the S&P 500 Index (SPX) by roughly 50 percentage points over the past three months, leading to an influx of call buying. For example, NVIDIA Corporation's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) has jumped almost fivefold in July alone, currently sitting at a top-heavy 2.05. However, there's still a surprising amount of pessimism surrounding NVDA on Wall Street, so more highs could be in store for the stock -- especially with earnings tentatively scheduled for next week. 
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