The analyst cautioned that the business faces risks from the crisis in the meat industry due to the virus outbreak
The downgrade also points to the long-term impact of African swine fever on the restaurant industry as the prices of animal protein are likely to stay elevated in the coming years.
Less than a month ago, the stock got a major boost after the company reported outstanding results for the first quarter, marked by a 60% surge in earnings to $3.40 per share supported by a 14% revenue growth. Encouraged by the solid outcome, the management issued a positive outlook for the fiscal year.
Related: Chipotle Mexican Grill Q1 2019 Earnings Conference Call Transcript
The downgrade comes at a time when brokerages, in general, have a bullish view on the stock, which witnessed multiple upgrades since the last earnings report. The average target price of $681.67 represents a 3% upside from the current levels.
Shares of the company lost about 6% in early trading Thursday and slipped below the $665-mark. The stock had gained steadily since the beginning of the year. In the past twelve months, it moved up about 55%.