UBS analysts were out today with commentary on tech giant Apple Inc. (NASDAQ:AAPL) and fast-food chain McDonald’s Corporation (NYSE:MCD), following recent conferences. Let’s take a closer look.
UBS analyst Steven Milunovich reiterated a Buy rating on shares of Apple, with a price target of $120, after hosting a Platform Economics Conference with colleague Eric Sheridan. Overall, the analyst left the conference with stronger conviction about Apple as a Platform.
The analyst observed, “Platforms tend toward winner takes all with smartphones an example. In 2007 seven firms owned 99% of the profits. By classic business thinking, they were doing all the right things: they had supply-side scale, strong brands, and great logistics. Today Apple dominates with 92% of smartphone profits. Much as in disruption innovation theory, managements of incumbents were not clueless. Instead, the game changed with platforms requiring development of an ecosystem. Apple lost out to Microsoft in PC operating systems because Microsoft was more open and had 6x the number of developers. Jobs learned and got it right with the smartphone.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Steven Milunovich has a total average return of 0.4% and a 39.1% success rate. Milunovich has a 1.4% average return when recommending AAPL, and is ranked #1731 out of 3717 analysts.
Out of the 36 analysts polled by TipRanks (in the past 3 months), 29 rate Apple stock a Buy, 6 rate the stock a Hold and 1 recommend to Sell. With a return potential of 28%, the stock’s consensus target price stands at $133.77.
Analyst Keith Siegner reiterated a Buy rating on shares of McDonald’s, with a price target of $131, after the company participated in the UBS Global Consumer Conference last week. Siegner has a yearly average return of 9% when recommending MCD, according to TipRanks.com.
The analyst said, “MCD confirmed many of the drivers we highlighted in our recent stick with the momentum note, and provided some incremental detail. Overall, CFO Kevin Ozan and McDonald’s USA President Mike Andres sounded very good, projecting confidence in packed meetings. Encouragingly, MCD didn’t try to talk us down on any of the sales drivers or strategic initiatives we asked about, and provided additional detail and indications of several plans currently in development or under consideration (see pg. 5 for details). While the market has been somewhat cautious over the last couple of months based largely on channel checks, and investors appear to have dialed back expectations, we think MCD is demonstrating momentum is just beginning and numbers can move higher over time.”
Out of the 17 analysts polled by TipRanks in the last 3 months, 11 are bullish on McDonald’s Corporation stock, while 6 remain neutral. With a return potential of 4%, the stock’s consensus target price stands at $129.08.