Analysts at UBS said the price target change comes "as a path to improved operating momentum is emerging and management appears to have a greater sense of urgency behind value-creation opportunities."
"We see limited downside from here, given still low expectations and valuation well below most restaurant and multinational consumer peers, and instead see significant upside of SSS improvement in the U.S.," the firm noted.
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Shares of McDonald's are up 0.38% to $103.25 in pre-market trading on Tuesday.
Separately, TheStreet Ratings team rates MCDONALD'S CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate MCDONALD'S CORP (MCD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."