Deutsche Bank downgraded shares of Chipotle Mexican Grill to a "sell" from a "hold" on Tuesday, citing a lack of faith in the company's ability to recover after a series of foodborne illness outbreaks.
"We still question what a recovery will look like (and when it will materialize)," Deutsche Bank analysts said in a research note. They said that while management has been proactive in "trying to regain consistency and customer trust, there is tremendous uncertainty on how well they will be received."
The bank's analysts foresee a 24 percent drop in Chipotle's stock price, a plunge to $400 from its Feb. 22 price of $525.90. Shares in the restaurant are down more than 22 percent in the past 12 months, even though the stock is up more than 8 percent since January.