S&P Capital IQ Reiterates its STRONG BUY Rating on McDonalds, Target Price Raised

October 24 00:00 2011

NEW YORK, October 24 (RainbowNewsLine.com) – Analyst Jim Yin of S&P Capital IQ reiterates his STRONG BUY rating on the shares of McDonalds (NYSE: MCD), while raising his estimates for the company. The 12-month target price is raised from $99 to $109.

Analyst Jim Yin, in a research note published on October 22 mentions that the company reported its Q3 EPS ahead of the estimates, reflecting 14% & 5% growth in in total revenues and global sales comps, respectively. The analyst believes that the company would benefit from its value offerings given the slow growing economy. The analyst expresses his optimism regarding the company becoming more upscale with its ongoing modernization efforts and wider selection of premium foods such as McCafe. The analyst continues to belive that McDonalds has significant growth opportunities in emerging markets. The EPS estimates for 2011 and 2012 have been raised from $5.25 to $5.28 and from $5.78 to $ 6.05, respectively.