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Deutsche Says McDonald’s Has Potential for More Market Share, Stock Jumps

Published 03/17/2021, 11:19 AM
Updated 03/17/2021, 11:22 AM

By Dhirendra Tripathi

Investing.com – A buy call from Deutsche Bank (DE:DBKGn) boosted shares of McDonald’s Corporation (NYSE:MCD) 1.3% in Wednesday’s trade.

Deutsche's upgrade from hold carries a price target of $244. The quick service restaurant chain has a market cap of $165 billion.

“Over the balance of this year, we think that continued momentum in the U.S. business as well as an arguably underappreciated market share opportunity in the IOM segment should lead to upward revisions to consensus EPS, specifically in 2022e and potentially in 2023e as well,” analyst Brian Mullan wrote in his note.

IOM stands for international operated markets.

The receipt of checks under the $1.9 trillion stimulus could also be adding to the positive environment for the stock as experts believe some of that money could go into discretionary spending like movie watching, online gaming and restaurant dining.

 

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