McDonald's Stock Edges Up After Analyst Upgrade

McDonald's Corp.'s stock gained 0.2% in premarket trade Wednesday, after the fast-food giant was upgraded at RBC Capital Markets on expectations that same-store sales trends will turn positive this year, and continue to grow in 2016. Analyst David Palmer raised his rating to outperform, after being at sector perform since November 2013, and boosted his stock price target to $115 from $93. He believes the improvement in sales will be based partly on an improvement in its U.S. business. Palmer also believes McDonald's stock is being valued at a "significant discount" to its peers. The stock, a component of the Dow Jones Industrial Average, has gained 4.3% in the past three months, outperforming the Dow's 1.7% rise.