2/9/2010- Morgan Stanley analysts have higher margin expectations for Chipotle Mexican Grill (NYSE:CMG) than the consensus estimates.

The bank expects operating margins of 11.9%, vs. the consensus estimates of 10.6%, in Q4. It also expects same store sales of flat to 1%, assuming 2.5% pricing and a 2% decline in traffic.

Analysts John Glass and Jon Tower said, "We hope we are conservative here. Guidance expectations have already been set at 0% comps and 13.5% unit growth, although CMG has not spoken to an EPS target (and may not)."

Morgan Stanley maintains an "overweight" rating on the stock and a $111 price target. It sees fiscal 2009 EPS of $3.41, vs. the consensus estimates of $3.77, and fiscal 2010 EPS of $3.88, vs. the consensus estimates of $4.18.

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