On Thursday, everyone’s favorite burrito maker Chipotle Mexican Grill (CMG - Free Report) is gaining, up around 2.7% in afternoon trading after the stock was upgraded by Wedbush.
Wedbush analyst Nick Setyan has lifted his rating to a neutral from an underperform, and boosted its price target to $400 from $370. He believes that Chipotle hasn’t experienced the post-election rally that has blessed other stocks in the restaurant industry. Setyan also cited “a post-Q3 downward revision of 2017 Street expectations below our estimates” and a focus on improving margins.
Chipotle is struggling to recover from an E. coli outbreak that hit several of its restaurants back in 2015, and recently, CEO Steve Ells said many of the company’s restaurants were unclean and offered poor customer service, prompting a turnaround plan to help boost sales.
Over the past one year, CMG is down almost 15%, and currently holds a #5 (Strong Sell) on the Zacks Rank.
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