After Two Years, a Chipotle Bear Changes His Tune Just Before Earnings

Chipotle Mexican Grill (NYSE: CMG) gained a new ally today, and it came from a most unexpected source. On the eve of the company's third-quarter financial report, Bank of America Merrill Lynch analyst Gregory Francfort has done an abrupt about-face.

The analyst, who has had a sell rating on Chipotle shares for more than two years, suddenly jumped on the bandwagon, upgrading the burrito slinger and significantly boosting the firm's price target. The call may be a little late, however, as Chipotle has been one of the most successful restaurant stocks over the past couple of years, more than tripling its share price since bottoming in early 2018.

Let's take a look at the analysts' reasoning and see what to expect when the company reports earnings after the market close on Tuesday, Oct. 22.

Source Fool.com