UPDATE: Piper Sandler Upgrades McDonald's (MCD) to Overweight, 'Positioned To Drive Continued Top-Line Outperformance'
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Piper Sandler analyst Nicole Miller Regan upgraded McDonald's (NYSE: MCD) from Neutral to Overweight with a price target of $282.00 (from $232.00).
The analyst comments "Our recent proprietary survey work leaves us incrementally confident around McDonald's industry-leading ability to deliver on consumers' sustained preference for drive-thru experiences and elevated demand for core hamburger and chicken cuisine categories. Looking forward, we expect continued topline momentum which in turn can help drive relatively consistent execution. While the cost pressures and operational challenges facing the broader industry are real, we believe McDonald's is uniquely positioned to leverage its size, scale, operational capabilities, and ongoing investments to take share as it leans into the high-level consumer trends highlighted by our latest survey (here). Further, the company's recent recommitment to share repurchase rounds out its total return policy. We are moving to an Overweight rating (from Neutral prior) and $282 price target based on ~18x our FY22E EV/EBITDA (vs. $232 prior based on ~17x FY22E prior); this multiple translates to ~27x on a PE basis."
Shares of McDonald's closed at $268.07 yesterday.
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