Chipotle's price target raised to $45 after strong Q2, but valuation concerns remain.

Argus Research raised Chipotle Mexican Grill's price target to $45, reflecting a 21.13% potential upside from its previous target of $37.15. The upgrade follows strong Q2 results, with adjusted earnings of $0.33 per share and a 9.3% revenue increase to $3.35 billion, driven by higher customer transactions and spending. However, a Discounted Cash Flow model suggests Chipotle's intrinsic value is between $34.94 and $37.50, below its recent price of $38.52, indicating possible overvaluation. Despite a declining operating margin due to higher costs, Chipotle's debt-free balance sheet supports future growth and investments.