Piper says put new money into Chipotle, ups price target to $2,600

Piper Sandler analyst Nicole Miller Regan raised the firm's price target on Chipotle Mexican Grill to $2,600 from $2,235 and keeps an Overweight rating on the shares. The analyst is making a "valuation argument in favor of both continuing to own as well as put new money to work in CMG shares." Chipotle is one of the highest return on invested capital companies in the industry and at a 6,000 unit total addressable market, the market is only assigning a 32-times price-to-earnings multiple based on today's stock price, Miller Regan tells investors in a research note. While new unit opening growth should be the dominant factor, menu changes and marketing "also serve as catalysts," says the analyst. Miller Regan reiterates Chipotle as her "top recovery investment recommendation." Her 2025 estimates suggest "at least" $73 per share of earnings power.