UBS Trims Estimates and PT on McDonald's (NYSE: MCD), However Stock Still Deserves Premium Valuation

UBS maintains a 'Buy' on McDonald's (NYSE: MCD) price target lowered from $110 to $106.

Analyst, David Palmer, said, "We are lowering our 2012E and 2013E EPS estimates to $5.60 (+6% YOY; $5.68 consensus) and $6.22 (+11% YOY; $6.27 cons). We are trimming our estimates by $0.11 and $0.10 for 2012/2013E to reflect currency drags of $0.14 and $0.06 and a higher mix of value-oriented (e.g. lower margin) sales in Europe. Our US and Europe SSS estimates for 2012E remain the same at 5% and 4% respectively."

Palmer maintains a Buy on MCD, saying the company deserves a premium despite concerns in Europe, saying valuation is actually cheap (14x) vs. (15x) for Coca-Cola (NYSE: KO), Pepsi (NYSE: PEP), Heinz (NYSE: HNZ) and Procter & Gamble (NYSE: PG).

For an analyst ratings summary and ratings history on McDonald's click here. For more ratings news on McDonald's click here.

Shares of McDonald's closed at $89.62 yesterday.

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