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Analyst raises Chipotle's rating and price target

NEW YORK (AP) -- Chipotle Mexican Grill still has room to grow more quickly, an analyst said in lifting his rating and price target on the restaurant chain's stock Monday.

David Palmer of UBS said in a client note that marketing and components like Chipotle's catering business should help to increase sales, whereas in the past the company was more reliant on the strength of its brand and opening more locations.

Chipotle announced in January that it was adding catering service in Colorado and would be rolling it out to all of its markets in the coming months.

Palmer boosted Chipotle to "Buy" from "Neutral" and raised the Denver company's price target to $390 from $330.

Shares of Chipotle Mexican Grill Inc. added 97 cents to $342.88 in afternoon trading.