McDonald's Stock Rises as Retail Investors Turn 'McGreedy' Amid Price Target Cut

McDonald's stock rose slightly in premarket trading on Thursday after a financial analyst lowered its price target. Despite this, retail sentiment around MCD shares has turned extremely bullish, with message volumes increasing by 470% over the past 24 hours.

TD Cowen reduced its price target for McDonald's to $270 from $282 and maintained a 'Hold' rating on the shares after attending the company's Investor Day. The revised target still implies an upside of more than 13% from the stock's last close, making it one of the lowest levels since 2016.

McDonald's management outlined its NEXT strategic playbook during the Investor Day, focusing on value meals and digital offers to drive growth. CFO Ian Borden also shared that U.S. sales were 'slightly negative' in both July and August but expects a positive September.

Retail investors on Stocktwits have been optimistic about McDonald's prospects, with one user saying 'when others are McFearful, we need to be McGreedy.' Another user noted the importance of considering the demographic that regularly eats at McDonald's, even if it's not high-quality food.