Analysts Grow More Bullish on 3 Dow Stocks

McDonald's has been a favorite of analysts in 2019

by Josh Selway

Published on Sep 24, 2019 at 10:05 AM
Updated on Jun 24, 2020 at 10:16 AM

Three stocks in focus after updated analyst coverage are Dow components Apple Inc. (NASDAQ:AAPL), McDonald's Corp (NYSE:MCD), and Walt Disney Co (NYSE:DIS). Here's a quick breakdown of how Wall Street is viewing AAPL, MCD, and DIS shares.

AAPL just received new coverage from Jefferies, which called the iPhone maker a "buy" and gave it a $260 price target. The brokerage firm says most other analysts are underestimating the impact 5G technology will have on Apple's bottom line, since it's projecting the company to ship more 5G capable phones than expected next year, which should also boost the services business.

This has AAPL shares up 1% at $220.87 this morning, likely getting an additional boost from upbeat U.S.-China trade headlines. The tech concern is up almost 39% year-to-date.

As for McDonald's, BTIG raised its price target to $240 from $220, based on the company's technology investments, including its purchase of conversation software specialist Apprente two weeks ago. This should all help MCD improve sales, reduce labor costs, and speed up the ordering process, though the brokerage firm believes the company should create a loyalty program to help improve the customer experience even more.

The fast food stock has added 0.6% out of the gate to trade at $212.765, as it tries to take back the 50-day moving average it gave up after a bear gap earlier this month. MCD stock is up 19% this year, guided higher by consistent praise from the analyst community

As for Disney, the stock was upgraded to "outperform" at Wells Fargo, noting that the company appeals to consumers from "all ages and generations," sending the shares 0.6% higher to $133.42 this morning. This comes after Variety said yesterday that Disney made a deal to bring content onto Facebook Watch. While the shares have pulled back some since their July high near $147, they're seemingly finding support near the $130 area, which has basically been a floor since April's surge.


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