McDonald's (MCD) PT Raised to $142 at Nomura
Nomura Securities analyst Mark Kalinowski reiterated a Buy rating and bumped his price target on McDonald's (NYSE: MCD) to $142.00 (from $138.00) following solid Q1 results.
Kalinowski commented, "The earnings upside surprise was driven by robust samestore sales. U.S. samestore sales rose by +5.4%, 80bp better than our +4.6% projection (with consensus at +4.6%). Worldwide same-store sales climbed by +6.2%, well above our +4.3% estimate (consensus +4.4%). Given the Q1 EPS beat and better-than-expected sales momentum, we raise our full-year 2016 EPS estimate by $0.12 to $5.55. And, given this higher base of anticipated earnings coming off this year, we also increase our full-year 2017 EPS forecast by $0.12, to $6.15. Our target price for MCD goes up to $142, representing about 23x our updated 2017 EPS estimate. Shares of MCD remain our top large-cap restaurant stock pick for 2016. We maintain our Buy rating on MCD."
The firm raised FY16E EPS from $5.43 to $5.55 and FY17E EPS from $6.03 to $6.15.
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Shares of McDonald's closed at $125.50 yesterday.