By Dhirendra Tripathi
Investing.com – McDonald’s (NYSE:MCD) stock rose 1.5% in Tuesday’s trade following a UBS (NYSE:UBS) report that said the fast-food chain has momentum on its side and that strength in underlying trends could continue.
Analyst Dennis Geiger reiterated his buy rating, and also his $260 target for the stock, an upside of nearly 12% from the current level of $232.75.
“We expect a global reopening supports a somewhat underappreciated reacceleration in international trends in coming quarters, while U.S. momentum likely continues and appears positioned for a multi-year period of outperformance,” Geiger wrote, according to StreetInsider.
Following his channel checks, Geiger believes the burger chain should remain a long-term holding. The analyst expects the company to expand its global market share and increase its free cash flows.
According to the analyst, commodities and wage inflation are likely to have only a modest impact this and next year.
McDonald’s Up As UBS Says Burger Chain Has Momentum
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