Deutsche Bank starts Chipotle at Hold despite ‘compelling’ story

Deutsche Bank analyst Brian Mullan initiated coverage of Chipotle Mexican Grill with a Hold rating and $1,132 price target. The stock closed Tuesday down $38.70 to $1,017.00. The company’s multi-year story is “compelling, with very little to pick at,” Mullan tells investors in a research note. However, with the stock is up 34% since reporting earnings just five weeks ago and currently sitting at all-time highs, the risk/reward has “changed by nature of the recent rally,” adds the analyst. As such, Mullan would look to get more positive on any pullbacks. Looking at conventional current year and forward year valuation metrics, Chipotle screens expensive, says the analyst.