MCD Stock Rises on 'McGreedy' Sentiment Despite Price Target Cut
McDonald's stock saw a slight increase in premarket trading on Thursday despite TD Cowen lowering its price target to $270 from $282. The analyst maintained a 'Hold' rating after attending the company's Investor Day, where management outlined the details of the NEXT strategic playbook.
The revised target still implies an upside of more than 13% from the stock's last close, but TD Cowen noted that the stock is trading at 17 times forward earnings, the lowest level since 2016 ex COVID-19. This suggests that not much needs to go right for the stock to drive alpha.
However, this is balanced by an unclear recovery timeline and an opaque trajectory of 2027-30 earnings per share growth.
Retail sentiment around MCD stock jumped from 'neutral' to 'extremely bullish' over 24 hours, with message volumes increasing 470% in the same time. Some users on Stocktwits attributed this shift to a demographic that eats McDonald's regularly and may not be aware of or invested in the stock market.