Chipotle Gains On Raymond James Upgrade After Price Hike  

© Reuters.

By Dhirendra Tripathi – Chipotle (NYSE:) shares rose 2.4% Monday after Raymond James (NYSE:) upgraded the stock to a strong buy.

Analyst Brian Vaccaro’s pegged his target for the stock at $1,800, a nearly 32% upside from its Friday close of $1,366.80.

Chipotle told Bloomberg last week it had increased prices by 3.5% to 4% across its menu.

According to Vaccaro, price increases create significant upside to second-half consensus comparison expectations.

Chipotle announced in May it was hiring 20,000 employees and raising its average hourly wage to $15.

Speaking at an event hosted by investment bank Baird, Chipotle Chief Executive Officer Brian Niccol said the company expects average annual unit sales to rise to $3 million to $3.5 million in the near term, compared to the recently reported level of $2.4 million, according to Bloomberg.

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