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Pro Analysis

Morgan Stanley: Chipotle recovery could take years

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Morgan Stanley lowered its rating for Chipotle Mexican Grill to equal weight from overweight, citing survey results that showed the company struggling to win back customers after health scares.

"We are downgrading ... based on new evidence that the sales recovery will remain more protracted than the market believes, and possibly more costly as a result, as CMG likely needs to ramp up marketing spend to lure consumers back in," Morgan Stanley's John Glass wrote in a note to clients Friday.

"A full sales recovery to prior peak volumes could take years in our view."