Chipotle Mexican Grill, Inc. (NYSE: CMG) shares rose on Monday after Piper Jaffray gave the highest target price for restaurant company.
According to CNBC, Piper Jaffray analyst Nicole Regan reiterated his overweight rating on Chipotle’s stock and gave a target price on the company’s shares of $530 in 12 months, representing its 25 percent upside from Friday’s close. This also marked the highest target on Wall Street.
Piper Jaffray said that the appointment of a new chief executive and a new delivery partnership helped the company turn around.
"Chipotle shares remain a top recovery pick. When, and as (not "if") the recovery unfolds, meaningful leverage exists. Our positive bias is based on culture change, strong unit-level economics and solid balance sheet. Catalysts include operational excellence, brand remodeling, and capital deployment." analyst Nicole Regan said in a note Sunday, according to CNBC.
In April, Chipotle reported better-than-expected comparable sales in the first quarter, sending its shares up nearly 25 percent in one day. First quarter comparable sales, a key metric for food chain companies, rose 2.2 percent, topping 1.3 percent consensus estimate. The positive sentiment also came from people’s confidence in the new CEO, Brian Niccol, who built a good reputation at Taco Bell.
"Chipotle is a purpose driven brand with loyal customers, passionate employees, industry-leading economic potential, along with incredible brand equity, and craveable food with integrity, all built over the last 25 years," said Brian Niccol, chief executive officer in a statement.