Business

Citi Seeing ‘increasingly favorable’ setup at McDonald’s, opens Investing.com’s Negative Catalyst Watch page



© Reuters. Citi sees ‘increasingly less favorable’ setup at McDonald’s, opening to watch for negative catalysts

By Senad Karaahmetovic

A Citi analyst weighed in on McDonald’s (NYSE:) as he believes the risk-reward is currently less positive amid growing macro challenges in Europe.

Forex and macro trends are “shadowing EPS estimates” towards Q3 and winter results, the analyst warns clients. As a result, the analyst revised his estimate and cut his price target to $246 from $275.

Furthermore, the analyst warned investors that McDonald’s valuation remains very high, which leaves “little room for the stock to absorb negative estimate revisions.”

“While we do not question the macro strength/resilience of US business, the US SSS will need to beat (which is already strong) expectations by a percentage of MSD to offset offset the market ticking for FX and even a drop in LSD in the European SSS outlook,” the analyst wrote in a research note.

The analyst also opens up a negative 90-day catalytic observation on MCD stock.

Shares of McDonald’s fell slightly on Tuesday before opening after printing a three-month low yesterday.



Source link

news7d

News 7D: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button