BMO Capital analyst Andrew Strelzik downgraded Chipotle Mexican Grill (CMG) to Underperform from Market Perform and lowered his price target for the shares to $620 from $675.

The stock closed yesterday down $9.43 to $706.04.

African Swine Fever will likely create a "meaningful, multi-year upswing" in protein prices, and Chipotle is among the restaurants most at risk, Strelzik tells investors in a research note. The company could begin to recognize stronger protein inflation as early as Q3 of this year, says the analyst. He believes margin pressure from African Swine Fever creates downside risk to earnings for Chipotle.

Strelzik's 2020 earnings estimates for the company are nearly 10% below consensus.