Morgan Stanley Screams “Perfect Entry Point” on Chipotle Shares After Major Upgrade…

Well apparently, guac isn’t the only thing worth paying extra for. After a rough start to 2025 (down 10.5% YTD), The House that E.Coli built got handed a fresh upgrade from Morgan Stanley analyst Brian Harbour, who says the recent burrito-related dip is actually a zesty opportunity for investors. Harbour bumped Chipotle from "equal weight" to "overweight," nudging his price target from $65 to $70, suggesting nearly 30% upside potential. Bigly.

 

(Source: Giphy) 

Now sure, Chipotle’s recent same-store sales forecasts have been about as disappointing as Conan O’brians monologue at the Oscars, withJanuary traffic numbers plunging from volatile weather and LA’s hell on Earth wildfires. But CFO Adam Rymer expects Q1 sales to stay pretty much flat (not worse)---even though investors panic sold the sh*t out of the stock.

However, Harbour says these problems are short-term rather than structural. "An entry point has presented itself," Harbour wrote to clients. Translation: BTMFD. If you don’t speak degenerate, in other words— Chipotle’s still got the sauce, and investors who've been hungry for a chance to buy CMG at a discount just got served.

(Source: CNBC) 

Another key piece to the upgrade is that Chipotle isn’t just slinging burritos anymore, instead they’re becoming a legit tech player. Harbour highlighted CMG's aggressive push into automation and software, describing the chain as "probably the best combo of an on-trend brand, existing scale, and incremental tech bets." ChatGPT walked so Chipotle’s “Ava Cado” could run. 

Meaning, Chipotle is quietly turning into the Tesla of tacos, using robots and software to streamline operations, boost margins, and offset inflation. And automation means Chipotle can keep underpricing competitors—so your overpriced salad at Sweetgreen is basically dead in the water at this point. Plus, let’s remember that with 750 million sitting in the bank and literally zero debt, CMG has plenty of financial flexibility for expansion, tech investment, or even returning capital to shareholders. Must be nice.

(Source: Investing.com) 

But, but, but… Morgan Stanley isn’t the only analyst getting horned up for CMG again. Of the 36 analysts who cover Chipotle, 26 give it a "buy" or "strong buy" rating. The average price target implies roughly 22% upside (which is pretty optimistic for a restaurant chain in this economy.). In premarket trading after Harbour’s upgrade, Chipotle shares jumped more than 2%. (Seeking Alpha analysts are still playing hard-to-get though, giving CMG a consensus "Hold" rating. Tough crowd.)

So yeah, even though Chipotle’s price-to-earnings multiple is hovering around a spicy 43x projected 2025 earnings—Morgan Stanley just reminded everyone that CMG is still a quality growth play with a rock-solid balance sheet, great international prospects, and more tech potential than most expected. Of course, risks include near-term sales volatility, macroeconomic factors, and the ever-present threat of another food poisoning outbreak. But hey, what's a little E. coli between friends?

(Source: Giphy) 

At the time of this writing, Chipotle is up 1.29% on the day (still nowhere near the 52-week high of $69.26 but comfortably above the "sell everything" low of $47.98.) So with that, keep an eye on this stock and place your bets accordingly. As always, stay safe and stay frosty, friends! Until next time… 

P.S. My buddy Jared is sharp as hell—probably one of the smartest guys I know. But when it comes to investing? An absolute clown. Why? Because he doesn’t grasp the one thing that separates winners from losers in the market: information. And not just any information—I’m talking about the kind of intel that Wall Street hoards like the FBI hoards Hunter Biden's laptop—because the second retail traders get their hands on it, their edge starts to disappear.

Moral of the story here? Don’t be a Jared. Get access to the real market-moving data, the stuff hidden behind paywalls and institutional gatekeeping by joining Stocks.News premium. At the end of the day, the market isn’t playing fair—so why should you? 

Stocks.News holds positions in Tesla as mentioned in the article.