Chipotle Stocks For 2016 Still Predicted To Have Big Gains Despite Previous Food Scandal
The food crisis which engulfs the embattled burrito chain fueled a series of speculations and varying opinions by research analysts and financial pundits over Chipotle's future stock earnings and valuations.
As news of food-borne disease outbreaks continue to plague the headlines, Chipotle's growth prospects have become increasingly uncertain causing some investors to move their investments elsewhere.
As 2015 moves to an inevitable close, what does the future hold for Chipotle Mexican Grill?
Objectively speaking, in the light of the existing circumstances, the pre-E.Coli growth era is largely not possible next year. But if you heed legendary investor Warren Buffet's advice on long-term investments, you'll probably see a quite different picture.
So far, many published analyses paint dim prospects for the company that's worth $24 billion. However, some argue that the company will definitely see light at the end of the tunnel.
"We still think the business ultimately will rebound and believe patient investors can be rewarded in owning CMG, but the lack of visibility related to the timing/trajectory of the recovery prevents us from taking a more constructive near-term stance on the stock at this stage," observed David Tarantino of Baird Equity Research as quoted in article by WND.
The problem with forecasting about Chipotle's future is that the figures available to the public do not exactly provide an exact future growth trajectory for the company. There are a number of influencing factors which make stock value assessment in the present quite difficult if not impossible.
"The estimates are all over the board all over the street. And everybody could be totally wrong," said Peter Saleh of BTIG as mentioned by CNBC.
Overall, Chipotle stocks remain largely bullish in the market with 15 buy recommendations, 17 holds, and one 'sell' note in a Thomson Reuters update as stated by Market Watch.