Chipotle (CMG) – 14.11.2016


Note: Our price target was hit on 14.11.2016

Chipotle Mexican Grill (CMG) has been down 45% since November 2015 with little to no sign of recovery. The opportunity was seized by Activist investor Bill Ackman (Pershing Square Capital Management) where he took 9.9% stake in the company (worth $1.2B). After that news shares rose as much as 8.7% just to see further lows.

Last week CMG was traded at all time lows ($351). However though we have just heard some more good news where Bill Ackman made an agreement with the management for 3 seats at the company Board.

The stock is trading at $403 right now. Looking at the technical part, we can say that there is still a bit more upside potential for the share price. At this stage our short term price target is $419 (4% higher than the current share price).

Once our target is hit, we will update our analysis.

This cannot be considered as an investment advice!!