By Sam Boughedda
Oppenheimer analysts raised the firm's price target on McDonald's (NYSE:MCD) to $315 per share from $304, maintaining an Outperform rating on the stock in a note Thursday.
The analysts also reinforced the firm's top pick status on McDonald's despite shares rising to all-time highs. MCD is currently trading at $288.15, up 1% on the day.
"Our updated analysis highlights MCD as one of the rarities in our restaurant coverage where we've identified upside to Street's EPS in '23E/'24E," wrote the analysts.
They also stated that the fast food chain's resilient business model is battle-tested and adds unique protection to financial forecasts if the macro unexpectedly deteriorates.
"The investment story is also armed with emerging catalysts via an accelerating unit growth algorithm and leaner G&A strategy not properly reflected in consensus," they added. "Forward P/E of 24x doesn't represent a valuation discount, but MCD's strengthening fundamentals, faster growth and candidacy for positive earnings revisions keeps us attracted."