NEW YORK (TheStreet) -- Shares of McDonald's (MCD) - Get Report were down in mid-afternoon trading on Monday as UBS lowered its price target to $130 from $137 on shares of the Oak Brook, IL-based fast food chain.
The firm has a "buy" rating on McDonald's stock, according to TheFly.
UBS analysts said they remain cautious about McDonald's due to challenging industry trends, which could create near-term pressure on the stock.
That said, McDonald's noted Friday in its better-than-expected 2016 third-quarter results that it's on track with re-franchising and general and administrative savings initiatives, UBS added.
The firm believes the ongoing efficiency efforts could drive upside over time, TheFly reports.
Separately, 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 articles's author.
The team rates McDonald's as a Hold with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and solid stock price performance. However, as a counter to these strengths, the team also finds 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