Chipotle Mexican Grill shares rose Thursday, as an analyst at JPMorgan turned bullish on the stock.
Chipotle's food safety problems cost the company three years of earnings growth, according to analyst John Ivanko, but he sees more upside than downside. He upgraded the stock to overweight from a neutral rating, and increased its price target to $510 from $465.
"Our call is based on Chipotle being a highly meaningful brand, that with time and expense can regain customer trust," Ivanko wrote in a note.
Although same-store sales aren't expected to recover until fiscal year 2018, the analyst says a turnaround could begin as soon as the end of this year. According to Ivanko, the current stock price represents an "attractive risk/reward entry point."
Shares of Chipotle climbed about 2.5 percent on Thursday, but have lost nearly 5 percent so far this year and more than 32 percent over the past 12 months.