TipRanks’ analyst ranking service pinpoints Wall Street’s best-performing stocks, including Lululemon and Chipotle.
, who ranks 357 out of more than 8,500 analysts on TipRanks, said that CMG remains his top idea for investors with a 12-month horizon.
The analyst observed that the stock has pulled back since the mixed second-quarter results due to concerns about late Q2 2023 and early Q3 traffic, subdued Q3 restaurant margin outlook, and macro factors. Nevertheless, he feels that this pullback has created an attractive opportunity to buy CMG stock based on multiple positive catalysts that could emerge in the months ahead.
"Specifically, we expect signs of strong same-store traffic momentum and further pricing actions to lead to an upward bias to EPS estimates and support robust valuation metrics on CMG heading into year-end," said Tarantino. Additionally, he sees the possibility of CMG accelerating its unit growth to the high end of its target of 8% to 10% annually, supported by the hiring of additional construction managers this year. Tarantino estimates that a combination of about 10% unit growth and mid-single-digit comparable sales could drive low-to-mid teens revenue growth and more than 20% EPS increase, a profile which he believes deserves a premium valuation.
Tarantino reaffirmed a buy rating on CMG stock with a price target of $2,400. His ratings have been successful 62% of the time, with each rating delivering an average return of 10%. (See
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Instacart raises IPO price range after Arm's strong Wall Street debutInstacart controls about 22% of the $132 billion U.S. online grocery-delivery market, according to Evercore. The company said it had 5.1 million users as of June 2023.
Weiterlesen »
Wall Street slips, but is still on track for weekly gainsStocks are slipping in morning trading on Wall Street but not enough to erase the market's gains for the week.
Weiterlesen »
There's one Wall Street investment bank that's not buying the AI hypeExcitement around artificial intelligence has dominated 2023, but not everyone on Wall Street is acknowledging the near-term hype.
Weiterlesen »
U.S. Ambassador Sees Detained Wall Street Journal Reporter Evan GershkovichLatest consular visit comes as tensions between the U.S. and Russia slump to Cold War lows
Weiterlesen »
Auto Stocks Rise as UAW Strike Gets Reaction from Wall StreetGM, Ford, and Stellantis were off in premarket trading, but gained strength as the day wore on.
Weiterlesen »
How Old Margot Robbie Was In The Wolf Of Wall StreetIs Margot Robbie's age accurate to Naomi's?
Weiterlesen »