Chipotle 's pricing, digital sales strength and even a recent Tesla giveaway marketing campaign are among several reasons why UBS thinks "real upside still exists" for the restaurant stock. "We remain optimistic on the path for shares given increased visibility into compelling multi-year growth, upside to Consensus earnings, and confidence in management's ability to continue to execute against growth plans," UBS' Dennis Geiger said in a note released Friday. UBS reiterated its buy rating on Chipotle and set its price target at $1,700, implying 10% upside to its closing price of $1,538.23 on Thursday. Chipotle made headlines in June when the company said it would hike prices about 4% as it raised employee wages. That increased pricing should boost sales momentum for the fast-casual chain, according to UBS. The firm noted digital sales, menu innovation, marketing and its loyalty program also support continued growth for Chipotle. "Recent digital marketing campaigns including a Tesla giveaway & game, 'Team Chipotle' digital-only menu items, and an expanded Twitch partnership are examples of initiatives that should further increase CMG's leading digital presence and broader customer reach," Geiger said. Meanwhile, a reopening economy should also boost dine-in traffic, UBS said. Chipotle shares are up about 13% in the past month and 11% higher in 2021. — CNBC's Michael Bloom contributed reporting
Customers order from a Chipotle restaurant at the King of Prussia Mall in King of Prussia, Pennsylvania.
Mark Makela | Reuters