Chipotle Initiated At Underweight At Stephens, Price Target $425

Chipotle Mexican Grill Inc. was initiated at underweight at Stephens with a price target of $425. The bank has concerns that the company's investment in food safety and other measures will push margins below expectations, it said in a note published Tuesday. Chipotle is trying to recover from a series of illness outbreaks tied to its food. Stephens analysts also believe same-store sales growth could take longer to recover than many say. Analysts say they are optimistic in the long term, but "we believe earnings expectations need to be reset before the stock becomes attractive." Chipotle shares are down 38.4% for the past three months. The S&P is up 1.3% for the same period.

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