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McDonald’s: Credit Suisse Starts Coverage on Its Stock

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Credit Suisse’s rating

On June 25, Credit Suisse started coverage of McDonald’s (MCD) with an “outperform” rating. Credit Suisse gave the stock a 12-month target price of $230, which implies an upside potential of 11.8% from its stock price of $205.71 on June 25.

As reported by CNBC, Credit Suisse thinks that investments in implementing technology and modernizing McDonald’s restaurants have helped the company expand its competitive moat compared to its peers.

 

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Analysts’ recommendations

Overall, analysts have a “buy” recommendation for McDonald’s. Among the 32 analysts that follow McDonald’s stock, 78.1% recommended a “buy” rating, while 21.9% recommended a “hold” rating. None of the analysts recommended a “sell” rating. On average, analysts have a 12-month target price of $217.42, which implies a return potential of 5.7% from its stock price of $205.71 on June 25.

Since the announcement of McDonald’s first-quarter earnings on April 30, Barclays, SunTrust Robinson, BMO, Guggenheim, Mizuho, J.P. Morgan, Cowen and Company, BTIG, Piper Jaffray, and Stifel have all raised their target prices. In June, UBS has increased its target price from $185 to $203. Stifel has raised its target price from $190 to $200.

Peer comparisons

Among the 32 analysts that cover Starbucks (SBUX), 59.4% recommended a “hold” rating, 37.5% recommended a “buy” rating, and 3.1% recommended a “sell” rating. Analysts have given Starbucks a 12-month target price of $79.64, which implies a potential fall of 5.5% from its stock price of $84.25.

Among the 27 analysts that follow Wendy’s (WEN), 55.6% recommended a “buy” rating, while 44.4% recommended a “hold” rating. On average, analysts have given Wendy’s a 12-month target price of $20.63, which implies an upside potential of 6.0% from its stock price of $19.47.

Among the 13 analysts that cover Restaurant Brands International (QSR), 61.5% recommended a “buy” rating, 30.8% recommended a “hold” rating, and 7.7% recommended a “sell” rating. Analysts have a 12-month target price of $71.0, which implies an upside potential of 2.0% from its target price of $69.60.

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