Mizuho Initiates Coverage on Chipotle (CMG) With Neutral Rating, Price Target of $40

Core Insights - Chipotle Mexican Grill Inc. (NYSE:CMG) is viewed positively by Citadel LLC, with over 30% potential upside, despite disappointing share price performance in 2025, where shares have lost 24% since Q2 results and over 33% year-to-date due to weaker consumer sentiment, increased competition, and inflationary pressures [1] Group 1 - Mizuho Securities initiated coverage on Chipotle with a Neutral rating and a target price of $40, indicating no material upside from current levels [2] - Analysts at Mizuho noted that Chipotle's marketing and special offers have not significantly boosted sales growth, making it difficult to maintain historical growth rates amid rising competition [3] - There are concerns regarding downside risks to same-store sales expectations, which could impact future growth visibility for the company [3] Group 2 - Chipotle is recognized as a U.S.-based fast-casual restaurant chain specializing in Mexican cuisine, but certain AI stocks are considered to offer greater upside potential with less downside risk [4]