There’s an attractive buying opportunity in shares of Chipotle Mexican Grill that investors should take advantage of, according to JPMorgan. The bank upgraded the fast casual Mexican chain to overweight from equal weight. It did trim its price target to $35 from $38, though that still implies upside of 24% from Thursday’s close. Chipotle shares have been under pressure over the past year, losing more than 46% in that time as higher prices led consumers to cut back on spending where possible. However, the company’s first-quarter report showed signs Chipotle could be in the midst of a turnaround, with same-store sales growing by 0.5% . Analyst John Ivankoe also said that, with the stock trading below $30, there’s “much more risk-weighted upside than downside.” CMG 5D mountain CMG rises “We believe a rare valuation opportunity has emerged at CMG as the stock’s multiple has now fully re-rated to reflect a more moderate – yet still well above average – growth profile,” he said in a note. “Waning consumer confidence … gives reason for pause but we believe expectations and current valuation allow investors to be compensated for crossing this wall of worry.” Ivankoe added he sees same-store sales improving further from here, noting he expects 2026 growth of 1.4% versus a flat guidance for the year. Chipotle shares rose 1.7% in the premarket following JPMorgan’s rating change. Most analysts covering Chipotle are bullish on the stock. LSEG data shows that 27 of 39 analysts have a buy or strong buy rating.
