Chipotle Mexican Grill (CMG -0.14%) is not only a purveyor of tasty meals like burritos and quesadillas, it's a high-potential investment. That is, if you accept the latest argument put forth by one analyst at a prominent, white-shoe investment bank. He believes the company's stock, which has performed very well in the past, is especially primed for growth in the near future.

Morgan turns bullish

The analyst is Brian Harbour of Morgan Stanley, who at the beginning of March upgraded his recommendation on Chipotle's shares. He's now convinced they deserve an overweight (read: buy) designation, as opposed to his previous equalweight (hold) rating. Harbour also raised his price target on the stock to $70; formerly he believed it was worth $65.

At that new target, the pundit is expecting the share price to rise by nearly 30%. That's quite the improvement, but he has several convincing reasons for this.

According to reports, Harbour feels that Chipotle is a structurally sound company that is experiencing some weakness in sales recently (which has negatively affected its stock price).

In his view this is only a temporary headwind, and past the company's second quarter it should begin to abate. Management should be able to boost the fundamentals through appealing products, good marketing, and effective throughput. The analyst also cited the company's embrace of automation as a driver of sales and -- through cost savings -- profit margins.

Enduring popularity

I live near a Chipotle in Los Angeles, and despite its somewhat off-the-radar location it's always busy at peak meal times.

To me, this is a sign of a business that is delivering exactly what its customers want, and doing so efficiently. Repeat that 3,725 times -- the number of Chipotle restaurants open and slinging burritos as of the end of 2024 minus my local L.A. outlet -- and you've got a company well worth investing in.