Loop Capital has spotted a promising buying opportunity in Chipotle Mexican Grill and has upgraded the restaurant chain’s stock from a hold to a buy. The firm has set a price target of $65 per share, projecting over a 33% increase from where it closed on Thursday. Chipotle’s shares have been having a tough run in 2025, with a decline exceeding 19%. This month has been notably challenging, with shares dipping by about 10%. Analyst Alton Stump believes this slump presents a great chance for investors to step in.
Stump is optimistic about Chipotle’s future, suggesting that there’s a potential for earnings per share (EPS) to surpass current predictions significantly, with at least a 7.0-8.0% increase over the consensus EPS estimate of $1.30 for 2025. This hinge on comparable sales continuing to outperform expectations throughout the year.
Moreover, Stump sees Chipotle as a strategic option to navigate the uncertainties linked to President Donald Trump’s tariffs. These tariffs have recently put pressure on U.S. equities and stirred investor concerns about a possible recession. Stump is not overly worried, though, as Chipotle has a minimal exposure to the escalating tariff situation. Only about 2% of its total inputs come from Mexico, with avocados being a primary component. To mitigate risks, the company has diversified its supply chain over recent years, sourcing nearly half of its avocados from other Latin American countries.
Chipotle’s stock is generally well-received among analysts. Out of 36 who follow the stock, 27 have categorized it as a buy or strong buy, according to LSEG. In addition, the average price target suggests a promising growth potential of 35%.
