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Why Did Mizuho Downgrade Chipotle?

Why Did Mizuho Downgrade Chipotle?

On July 10, Jeremy Scott of Mizuho Securities downgraded Chipotle Mexican Grill (CMG) from “neutral” to “underperform.” Scott raised Chipotle’s target price from $300 to $330. The new target price represents a fall of 27.3% from the closing price of $454.21 on July 10. As reported by CNBC, in Scott’s research he said, “While it is our view that Niccol is the best choice to lead Chipotle from here, in the absence of clear catalysts that can justify significant earnings upside, we’re compelled to recommend investors reduce their risk.