UPDATE: Bernstein Starts McDonald's (MCD) at Market Perform
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Bernstein analyst Danilo Gargiulo initiates coverage on McDonald's (NYSE: MCD) with a Market Perform rating and a price target of $267.00.
The analyst comments "McDonald's: We're still lovin' it! But so does the market (MCD, Market-Perform, TP $267, +5% potential upside). We believe international markets will drive McDonald's growth and expect McDonald's to meet consensus on US SSS growth but beat current SSS expectations in Internationally Operated Markets (IOM) and International Developmental Licensed (IDL) markets. Our belief of McDonald's resiliency in uncertain environment and early success in 3D strategy (Digital, Delivery, Drivethru) informs our optimism. However, we believe our positive outlook is baked into current valuation, and shareholders should expect a limited upside for the current price. Hence, we expect McDonald's to trade at 26x PE NTM multiple with an EPS NTM expansion of 8%, in line with consensus. We set our 1 year TP for MCD at $267."
Shares of McDonald's closed at $254.39 yesterday.
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