The firm increased its price target on shares of the Oak Brook, IL-based fast food giant to $128 from $126.
The stock's balance of risks and rewards has become more favorable following underperformance so far this year, Baird wrote in a note cited by TheFly.
McDonald's "attractive" dividend yield should help protect against further downside risk, the firm added.
But Baird conceded that slower industry demand in the U.S. and tough upcoming comparisons create a "short-term headwind."
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
McDonald's strengths such as its solid stock price performance, notable return on equity and expanding profit margins are countered by weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.
You can view the full analysis from the report here: MCD
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.