Chipotle Mexican Grill (CMG) traded 20% higher on Thursday morning, after reporting earnings that beat Wall Street estimates.
The company reported earnings per share of $2.13 and total revenue of $1.15 billion, compared to analyst expectations of $1.57 and $1.15 billion.
Multiple analysts upgraded their estimates for Chipotle after the earnings call.
Our view is that CMG overcame adversity and appears to have solved its previous problems. However, it is now trading into resistance, and it is certainly possible that the stock could pull back a bit after this big one day run.
We upgraded our target, to reach $440 later this year.
That said, look for a pullback in late June as its minor and intermediate cycles are winding down.
Chipotle Mexican Grill (CMG) Stock Chart with Weekly Bars
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The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
