McDonald's: BofA lowers target price

(CercleFinance.com) - BofA's analysts express concern at the slowdown in the company's LFL growth, which in Q1 hit its lowest level since the onset of Covid in early 2020.


They believe that this bout of weakness should even continue in Q2, an underperformance they explain by a less favourable comparison basis, but also by poorer operational execution.

While acknowledging that the stock's valuation is currently at the lower end of its historical range, the broker expects the stock's performance to be held back by a return of LFL growth to around its long-term average in the US, i.e. 2%-3%.

As a result, BofA has reduced its target price for the stock to $288 (from $302 previously - cp: $253.5, -1.8%), while maintaining its 'neutral' rating on the stock.


Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.