Chipotle Mexican Grill Price Target Cut at Goldman Sachs, but Stock Is Still a 'Buying Opportunity'

Chipotle Mexican Grill (CMG 0.51%) stock is down 12% after the company reported earnings and Goldman Sachs analyst Jared Garber just cut his own price target the stock -- but investors should still see this as a "buying opportunity." 

Garber kept the fast-casual Mexican food chain on his "conviction list" and maintained his buy rating on the stock.

Chipotle survived the wreckage of the restaurant industry caused by the COVID-19 pandemic after states forced chains to shut down their dining rooms. Because its business was already takeout-friendly, Chipotle was able to quickly transition to a mobile ordering and delivery model so that its operation didn't suffer the same level of devastation many other restaurants endured.

Garber told investors in a research note Chipotle is emerging from the crisis in a better position than where it was previously. With a pipeline of menu innovations in store, such as its recently announced online-only quesadillas offering, the pullback in the Mexican food chain's stock makes it "one of the most compelling opportunities in the Restaurant industry."

Garber did lower his price target on Chipotle from $1,750 per share to $1,725 per share, but with the restaurant's stock closing yesterday at $1,335 per share, it still suggests nearly 30% upside to its shares.