McDonald’s, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Jon Tower from Citi maintained a Buy rating on the stock and has a $375.00 price target.
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Jon Tower has given his Buy rating due to a combination of factors that suggest positive future performance for McDonald’s. One of the main reasons is the anticipated re-acceleration of US sales, driven by a strategic shift towards value messaging and the consistent growth in international markets. This approach is expected to improve both top-line and bottom-line growth, leading to a potential expansion in valuation multiples.
Additionally, McDonald’s continues to gain market share among major burger chains, despite a recent slowdown in foot traffic. The increased use of the company’s app and the ongoing development of new platforms, such as beverage tests, indicate potential for further growth. These elements, combined with a favorable price target and expected share price return, underpin Jon Tower’s positive outlook on McDonald’s stock.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $350.00 price target.