X
<

McDonald's: Investors Are Optimistic before Its 2Q17 Earnings

PART:
1 2 3 4 5 6
Part 6
McDonald's: Investors Are Optimistic before Its 2Q17 Earnings PART 6 OF 6

Analysts Favor a ‘Buy’ Recommendation for McDonald’s

Target price

McDonald’s (MCD) management worked to enhance customers’ experience and improve the quality of its menu items. The initiatives appear to have compelled analysts to raise their target price. As of July 13, 2017, analysts expect McDonald’s stock price to touch $159.4 in next 12 months, which represents a rise of 2.8% from its current stock price.

Analysts Favor a &#8216;Buy&#8217; Recommendation for McDonald&#8217;s

Interested in JACK? Don't miss the next report.

Receive e-mail alerts for new research on JACK

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

The target price and return potentials of McDonald’s peers over the next 12 months are as follows:

  • Jack in the Box (JACK) – target price of $115.79 with a return potential of 21.6%
  • Restaurant Brands International (QSR) – target price of $56.71, which implies a fall of 7.8% from its current price
  • Wendy’s (WEN) – target price of $16.46 with a return potential of 5.2%

Analysts’ ratings

Of the 33 analysts that follow McDonald’s, 66.7% recommended a “buy ” and 33.3% recommended a “hold.” None of the analysts recommended a “sell.” On June 20, 2017, Cowen upgrade the stock to “outperform” from “market perform.” It also raised its target price from $142 to $180. The new target price represents a return potential of 16.1%. On May 3, 2017, Goldman Sachs upgraded the stock from “neutral” to “buy.” It also raised the target price from $126 to $153.

McDonald’s stock moves in tandem with analysts’ estimates. When analysts raise the target price, the stock moves up and vice versa. When the stock price is lower than analysts’ target price, it doesn’t mean an automatic “buy.” Investors should carefully analyze the various parameters that we discussed in this series before making any investment decisions.

X

Please select a profession that best describes you: