Chipotle Mexican Grill Inc. shares rose 0.9% in premarket trade, after Miller Tabak & Co. upgraded the fast-casual restaurant chain, saying the recent selloff is not warranted given expectations of strong same-restaurant sales and lower food costs. Analyst Stephen Anderson raised his rating to buy, after being at hold since December 2013, and bumped up his stock price target to $725 from $715. The stock had dropped 16% since closing at a record high of $726.63 on Feb. 3, to close Wednesday at a seven-month low, as the company's last two quarterly reports missed on sales, after beating the previous eight quarters. Anderson said he sees "multiple levers" for EPS growth to come in well above Chipotle's peers, and argues that the recent pullback in the share pride "provides opportunity for upside.
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