McDonald’s Target, Estimates Lowered by Two Analysts (MCD)

Fast food king McDonald’s Corporation (MCD) on Monday caught some tepid commentary from analysts at two major Wall Street firms following last week’s weak May same-store sales results.

Credit Suisse maintained its “Outperform” rating on MCD but lowered its price target to $104. That new target suggests an 18.5% upside to the stock’s Friday closing price of $87.75. The firm also cut its earnings estimates for the company, citing lower realized sales.

Meanwhile, UBS kept its “Buy” rating on MCD unchanged but also lowered its target to $104. The analyst also lowered its earnings estimates, noting currency effects and lower sales in Europe.

McDonald’s shares rose 65 cents, or +0.7%, in premarket trading Monday.

The Bottom Line
Shares of McDonald’s (MCD) have a 3.19% dividend yield, based on Friday’s closing stock price of $87.75. The stock has technical support in the $82-$85 price area. If the stock can firm up, we see overhead resistance around the $91-$92 price levels.

McDonald’s Corporation (MCD) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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