CMG Hits Fresh Highs After Blowout Earnings Beat

No less than 14 analysts lifted their price targets

Deputy Editor
Jul 21, 2021 at 10:38 AM
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Chipotle Mexican Grill, Inc. (NYSE:CMG) is in rally mode this morning, up 5.2% at $1,658, following the firm's second-quarter earnings report. Chipotle's profits of $7.46 per share on $1.89 billion in revenue handily topped expectations. CMG also lifted its comparable sales growth forecast, which also topped estimates, as customers begin to return to restaurants.

Analysts are paying attention to CMG's blowout earnings report. Already, 14 members of the brokerage bunch have lifted their price targets on Chipotle stock, including RBC Capital Markets. The analyst lifted its price estimate to $1,825 from $1,800, adding that it sees margin expansion for Chipotle via possible price increases, seeing as few balked at the restaurants recent raise in menu prices

Chipotle stock jumped to a fresh record high right out of the gate, toppling the $1,622 level, which sits near CMG's recent record highs, hit earlier in the month. Though the shares suffered a sharp pullback from the area, Chipotle's stock dip was mostly contained by the 20-day moving average. 

Considering CMG's impressive price action, more analyst upgrades could be on the horizon. Of the 23 covering the security, six still say "hold." Plus, The 12-month consensus price target of $1,849.68 is a slim 8.4% premium to current levels. 

Options traders are also swarming the stock. So far, 17,000 calls and 7,988 puts have crossed the tape -- 10 times the intraday average. The most popular is the 7/23 1,750-strike call, followed by the 1,800-strike call in the same series, with positions being opened at both. 

 

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