Chipotle Mexican Grill Inc.’s stock slumped 1.5% in premarket trade Friday, after the fast casual restaurant chain was downgraded at RW Baird, which cited concerns over an E. coli outbreak. Analyst David Tarantino cut his rating to neutral from outperform, and slashed his stock price target to $675, which is 9% above Thursday’s closing price, from $850. “We have become increasingly concerned about the risks related to the recent E. coli outbreak, which is taking longer to resolve than we initially anticipated and garnering significant media attention that poses a threat to broader consumer sentiment,” Tarantino wrote in a note to clients. He said 43 restaurants, or 2.2% of the company’s U.S. store base, remain closed in Washington in Oregon. The stock has lost 3.6% through Thursday since news of the E. coli outbreak broke on Nov. 1. It has shed 19% since closing at an all-time high of $757.77 on Aug. 5, while the S&P 500 is little changed since then.
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