Chipotle Mexican Grill (CMG) is offering an "actionable" long idea with an improving setup heading into Q2 earnings on July 29, Oppenheimer said in a note Monday.
The stock is entering the rear-view with an attractive opportunity after being stuck in a cycle of negative earnings revision for six straight quarters, the report said.
"We also identify a catalytic path to mid-single-digit SSS trends exiting 2026 amid better traffic traction, new tangible comp drivers, and more impactful pricing strategy," the note said.
For Q2, Chipotle is expected to deliver a "solid" all around beat, the note said, expecting the company to maintain a conservative stance on communicating full-year guidance.
Oppenheimer kept its outperform rating and $51 price target.
Price: $36.36, Change: $+1.11, Percent Change: +3.15%