Analysts say Chipotle continues to make moves in the right direction. The company Wednesday reported a blockbuster quarter beating on earnings, revenue and comps. Many analysts raised their price targets even though they were surprised by the surge in shares after the report.
The stock was up more than 13 percent in early trading Thursday, most recently around $596.50.
The "turnaround (is) looking for real," Morgan Stanley analyst John Glass said. "Results showed a meaningful positive trend change in sales, especially later in the quarter, with carry-through to 2019 and more initiatives still either in early stages or to come," he noted. Glass, who raised his price target, noted, "It's an expensive stock, not for the faint of heart, and a lot still has to go right to achieve this bull case."
Analysts at KeyBanc also think Chipotle's turnaround is "for real." He kept his overweight rating and upped his price target saying, "We believe that sweeping changes to personnel and internal processes are producing positive results and that consensus EPS estimates do not fully contemplate what is possible under this new management."
UBS's Dennis Geiger also wondered, "From here it's not clear shares have much upside near to medium term, & challenges to sales momentum or flow-through present downside risk."
Overall, Goldman Sachs, which has a neutral rating on stock, was slightly less impressed saying, "We were somewhat surprised by the strength of CMG shares after the close despite a strong earnings beat in the quarter when near-term commentary did little to confirm fairly bullish 1Q19 investor expectations."
Here's what else they think: