Morgan Stanley downgraded McDonald’s (MCD) to Equal Weight from Overweight with a price target of $324, down from $329. The firm says the stock has held up after a mixed last 12 months. McDonald’s is a “top quality business but hasn’t been, and probably will not be, insulated from some structural pressures on fast food,” the analyst tells investors in a research note. As such, Morgan Stanley sees the stock closer to fair value at current levels. With the stock up year-to-date and close to 25-times earnings, as many peers have de-rated, it is already embedding many of McDonald’s advantages as the segment leader, contends Morgan Stanley.
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