Morgan Stanley Maintained Bullish Stance on Chipotle Mexican Grill (CMG) Stock

Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the Reddit Stocks with the Highest Upside Potential. On July 25, Morgan Stanley analyst Brian Harbour maintained the bullish stance on the company’s stock, giving a “Buy” rating. The analyst’s rating is backed by a combination of factors demonstrating the company’s position in the broader restaurant industry. Despite the concerns related to short-term demand fluctuations, Chipotle Mexican Grill, Inc. (NYSE:CMG) happens to be a benchmark for growth restaurants, reflecting healthy market presence as well as potential for long-term success.

While the analyst acknowledged the volatility in the high-frequency data, such trends might be temporary and influenced by consumer pressures and seasonal patterns, added Harbour. Furthermore, though there are moderating fundamentals throughout the sector, Chipotle Mexican Grill, Inc. (NYSE:CMG)’s capability to deliver on the growth strategies places it favorably as compared to its peers. For 2025, Chipotle Mexican Grill, Inc. (NYSE:CMG) expects 315 – 345 new company-owned restaurant openings, with more than 80% having a Chipotlane.

Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“We ended our investment campaign in Chipotle Mexican Grill, Inc. (NYSE:CMG), Saia and Dick’s Sporting Goods during the quarter. Chipotle operates a system of fast casual restaurants. Chipotle’s combination of superior quality and speed of service has created a strong brand affinity. Furthermore, increased accessibility and convenience have been a strategic priority, leading it to add secondary “make lines” that enable each store to meet increased demand from third-party delivery services and the company’s own digital pickup lanes. After a successful, multiyear investment campaign, we harvested our final shares.”

While we acknowledge the potential of CMG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.