Chipotle stock rose Monday, lifted by an upbꦆ♏eat assessment by analysts at Morgan Stanley.

Burrito chain Chipotle Mexican Grill (CMG) has solid fundamentals despite 澳洲幸运5开奖号码历史查询:recently sluggish sales and dips in profit margins, Morgan Stanley analysts said. The company is poised to reduce its expenses by adopting technology, use this savings to “underprice” competitors and bolster its finances⛎ through expansion, they said. 

The shares were recently up about 2%, though they're down about 9% this year. Morgan Stanley raised its price target to $70, a few dollars above the average price target among analysts polled by Visible Alpha and about 30% above Friday's close. It also upgraded the shares to "overweight" from "equal weight."

“As the stock has continued to fade on weak sales data and growth stock pressures, an opportunity to step in has presented itself if one thinks these are short term headwinds,” the analysts wrote. “We're optimistic about how it evolves.”

Morgan Stanley said Chipotle has historically raised prices more slowly than its peers, and most recently, demonstrated a commitment to value by ens♓uring customersꦓ are given substantial portion sizes. Chipotle will initially absorb higher 澳洲幸运5开奖号码历史查询:expenses incurred under tariffs rather than raise prices, .

Due to its澳洲幸运5开奖号码历史查询: investment in automation and AI, Chipotle “may be in the unique position of underpricing the competition for many years to come, to maintain or even widen price gaps and protect value prop for the long run, which should in turn help traffic,” Morgan Stanley's note said.