In a report published Monday, Jefferies analyst Andy Barish reiterated a Hold rating on McDonald's Corporation and increased its price target on coffee company, Starbucks Corporation
In the report, Barish raised McDonald's price target from $83.00 to $91.00.
In the report, Barish noted, "We knew 1Q13 compares would be difficult but the sharp traffic drop-off in Feb as guests' wallets were squeezed was less expected. Many tempered '13 guidance, but the slowdown appears to have been largely ignored by the market; valuations have expanded as investors look past a choppy '13 to more normalized EPS growth in '14. We introduce '14 ests but remain selective, and prefer those names with tangible SSS drivers and cost offsets."
McDonald's Corporation closed on Friday at $101.42.
Meanwhile, Jefferies maintained a "Buy" rating for SBUX, and has raised its price target from $60 to $66. This price target suggests a 12.5% upside from the stock's current price of $57.69.
"We knew 1Q13 compares would be difficult but the sharp traffic drop-off in Feb as guests' wallets were squeezed was less expected. Many tempered '13 guidance, but the slowdown appears to have been largely ignored by the market; valuations have expanded as investors look past a choppy '13 to more normalized EPS growth in '14. We introduce '14 ests but remain selective, and prefer those names with tangible SSS drivers and cost offsets," Barish said.
Starbucks shares were mostly flat during Monday morning trading. The stock has been mostly flat in the past year. Shares of Starbucks Corporation have a 1.46 percent yield, based on Monday morning's price of $57.63.
