Deutsche Bank Upgrades McDonald's (MCD) to Buy; 'U.S. Business Is Strong, and the IOM Opportunity is Compelling'
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(Updated - March 17, 2021 8:14 AM EDT)
Deutsche Bank analyst Brian Mullan upgraded McDonald's (NYSE: MCD) from Hold to Buy with a price target of $244.00 (from $232.00).
The analyst commented, "We are upgrading shares of MCD to Buy, from Hold. Over the balance of this year, we think that continued momentum in the U.S. business as well as an arguably underappreciated market share opportunity in the IOM segment should lead to upward revisions to consensus EPS, specifically in 2022e and potentially in 2023e as well. In addition, we think that these near-term factors, combined with an attractive long-term global growth outlook, are supportive of MCD holding a ~24 to 25x P/E multiple, for a period of time, throughout an upward earnings revision cycle. To the latter point, we think that it is important to consider that just because MCD's LT algo is "less attractive" than several of its global quick-service peers (which is something we hear a lot), that doesn't mean that it isn't attractive on a stand-alone basis (within the broader consumer landscape, we think that it is)."
Shares of McDonald's closed at $219.86 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Comments, Hot Upgrades, Upgrades
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