Chipotle rises after J.P. Morgan upgrades to 'overweight'

Chipotle Mexican Grill

05/06/2026 15:29

Updates
** Shares of burrito chain Chipotle Mexican Grill CMG.N up as much as 7.4% at $30.27 after brokerage J.P. Morgan upgrades to "overweight" from "neutral" 
** Stock on track to hit an over seven-month high, if gains hold
** Brokerage, however, cuts PT to $35 from $38
** Says a meeting with executives captured management team acknowledging past mistakes and focusing on future opportunities
** Waning consumer confidence gives reason for pause, but expectations and current valuation allow investors to be compensated for crossing that "wall of worry" - brokerage
** "Chipotle offers one of, if not the best value, in restaurant chains with an entry level chicken bowl typically priced at $9-$10 across most major non-high-cost markets," says brokerage
** J.P. Morgan sees a rare valuation opportunity as the stock's multiple reflects a more moderate, yet well above average, growth profile
** 27 of 38 brokerages rate the stock "buy" or higher, and the rest  "hold"; with a median PT of $44 - data compiled by LSEG
** Up to last close, stock has fallen ~24% YTD

 (Reporting by Neil J Kanatt and Koyena Das in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))