Chipotle's Stock In Danger Of Biggest-ever Percentage Selloff
Chipotle Mexican Grill Inc.'s stock tumbled 7.5% in premarket trade Wednesday, putting it in danger of the biggest-ever one-day percentage decline in its near 10-year history, after the fast casual restaurant chain reported disappointing third-quarter results late Tuesday. The biggest one-day percentage decline to date was the 7.4% drop on April 22 after first-quarter results. J.P. Morgan analyst John Ivankoe recommended investors use any weakness in the stock as an opportunity to buy, citing a strong long-term outlooks for profit and same-store sales growth. He reiterated his overweight rating and $750 stock price target. Sterne Agee CRT analyst Lynne Collier maintained her buy rating and $766 stock price target, citing her long-term view that Chipotle will remain a "market share winner" among its peers despite the recent slowdown. Meanwhile, analyst Nick Setyan at Wedbush Securities cut his stock price target to $700 from $740, and kept his rating at neutral, citing concerns over a slowdown in transaction growth for the fourth quarter.
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