Investment analysts at JPMorgan Chase (NYSE: JPM) dropped their target price on shares of McDonald’s (NYSE: MCD) from $106.00 to $96.00 in a note issued to investors on Friday.
The analysts wrote, “We receive many inquiries daily whether now is the level where McDonalds is a “must buy”. We think the shares would be more attractive in the mid-$80s, but that reasonable 6-12 month upside in the stock is $96, for our new Dec-12 price target – lowered from $106 – based on its average ~16x multiple the past 7 years,on F13. McDonalds remains a core holding with a solid risk/reward profile and defensible business model based on low operating leverage and a very high level of store profits to insulate against a sustained downturn. However, we save our most aggressive stance on the stock for either a material price pullback or significantly improved benefits from current plans.”
McDonald’s traded down 2.94% on Friday, hitting $86.71. McDonald’s has a 1-year low of $80.00 and a 1-year high of $102.22. The company has a market cap of $88.119 billion and a price-to-earnings ratio of 16.69.
McDonald’s last released its earnings data on Friday, April 20th. The company reported $1.23 EPS for the quarter, meeting the Thomson Reuters consensus estimate of $1.23. The company’s quarterly revenue was up 7.1% on a year-over-year basis. Analysts expect that McDonald’s will post $1.57 EPS next quarter.
Other equities research analysts have also recently issued reports about the stock. Analysts at Goldman Sachs (NYSE: GS) reiterated a “buy” rating on shares of McDonald’s in a research note to investors on Friday. They now have a $100.00 price target on the stock, down previously from $105.00. Separately, analysts at UBS AG (NYSE: UBS) reiterated a “buy” rating on shares of McDonald’s in a research note to investors on Friday, May 18th. Finally, analysts at Cowen downgraded shares of McDonald’s from an “outperform” rating to a “neutral” rating in a research note to investors on Tuesday, May 15th.
McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry.
