Guy Adami Sees McDonald's At $103

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CNBC Fast Money's Guy Adami said in the segment of the show called "Behind the Trade" that he is a buyer of McDonald's Corporation MCD.

He explained that the stock hasn't been trading well recently because of the competition from Panera Bread Co PNRA and Chipotle Mexican Grill, Inc. CMG and bad headlines from China and Russia. Adami thinks that all the bad news are now priced in at 16 times forward earnings.

The stock trades at a discount to Burger King Worldwide Inc BKW and The Wendy's Co WEN, added Adami. He also believes that the stock reached the bottom at September 10, when it traded at $90.53 with a volume of 12 million shares.

Guy Adami thinks that viewers should buy McDonald's at $93.50 and add to the position on a close above $97, which is its 200-day moving average. He wants to place the profit target close to the 52-week high, at $103, and the stop loss at $90.50.

Posted In: CNBCMediaGuy Adami
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