Last $ 700 target price shows how far the chipotle stock is

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That says a lot about what's going on with
Chipotle Mexican Grill

that an analyst could increase his share price target by $ 200 without changing his rating – or pushing his share price much higher.

It happened Friday. Stifelof the Chris O'Cull maintained its sustainment rating, set in February 2018 as part of a Sell upgrade, while raising its price target from $ 500 to $ 700. (The target of $ 500 was set in February.)

One person might argue that even this new issue is not particularly newsworthy, in that FactSet now follows four analysts whose goals are equal to or greater than $ 700, all fixed since March. Some have demanded new records. The stock, meanwhile, was recently roughly stable at $ 703.65.

In February 2018, of course, the shares were closer to $ 250, and the bulk of the hike occurred since the recruitment of a new management team later this month. This team has generally led the company to improve its results and investors have supported its projects.

"We are encouraged by the improved sales and transactions at the company's identical restaurants, reflecting several operational initiatives, including more effective advertising, better delivery service coverage, in partnership with DoorDash, and increased customer penetration." digital controls, "wrote O'Cull. "That said, we believe that the current valuation of the stock reduces, at least partially, these positive aspects."

Barron Another bull analyst recently noted that optimism about the Chipotle stock's prospects was even less pronounced than at the previous summit in 2015. Subsequently, concerns over food security deterred diners and investors about two years.

The analyst suggested that as more analysts come in, stocks could move higher. The average price target, close to $ 575, remains well below current levels.

But actions have come a long way in a short time. Today's muted reaction to renewed buzz from analysts may indicate a desire for evidence of operational progress, although the stock has grown more than 60% this year.

Send an email to David Marino-Nachison at [email protected]. Follow him to @marinonachison and follow Barron's Next to @barronsnext.