Chipotle Stock: Next Stop, $1,000?
Chipotle Mexican Grill (NYSE: CMG) is hitting all-time highs after another blowout earnings report, and one Wall Street pro sees the shares cracking the triple-digit ceiling. Katherine Fogertey at Goldman Sachs is initiating coverage of the resurgent burrito chain with a bullish conviction buy rating. She is setting a Street-high price target of $1,000 on the stock, presenting a little more than 28% of near-term upside to the investment.
Fogertey concedes that the stock has been a sector laggard since the food-borne illness outbreaks at the chain began nearly four years ago. The stock's been on fire if you draw the starting line where it bottomed out early last year -- more than tripling along the way -- but it wasn't until this month that the shares finally took out the all-time highs it hit in late 2015. Fogertey is tapping Chipotle as her top stock in the restaurant space, an industry that she feels is benefiting from several trends including strong consumer spending, digital engagement, and the growing popularity of food-delivery apps that is boosting both the number of transactions and the size of those transactions.
Image source: Chipotle Mexican Grill.
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