UPDATE: Deutsche Bank Reiterates on Chipotle Mexican Grill on 2014 Restaurants Outlook

In a report published Wednesday, Deutsche Bank analyst Jason West reiterated a Hold rating on Chipotle Mexican Grill CMG, and raised the price target from $440.00 to $500.00. In the report, Deutsche Bank noted, “After a year of surprisingly strong stock performance against sluggish fundamentals, our biggest concern heading into 2014 is that investors decide restaurant stocks are too expensive and seek out better values elsewhere. The group trades at ~24x est. NTM P/E, near post-recession highs and vs. 5-year avg. of 18x. Rel. P/E = 1.52x vs. 5-yr. avg. of 1.34x. At the same time LT earnings growth rates are coming down as many established players mature and as consumer confidence and income growth remain below pre-recession peaks. This set-up leaves the group vulnerable for a correction, in our view.” Chipotle Mexican Grill closed on Tuesday at $512.64.