UPDATE: JP Morgan Lowers PT to $96 on McDonald's; Tweaks Down Estimates

Jefferies reiterates its Overweight rating on McDonald's MCD but lowers its price target from $106 to $96 as shares appear more attractive in the mid-$80s. Jefferies notes, "We receive many inquiries daily whether now is the level where McDonalds is a “must buy”. We think the shares would be more attractive in the mid-$80s, but that reasonable 6-12 month upside in the stock is $96, for our new Dec-12 price target – lowered from $106 – based on its average ~16x multiple the past 7 years, on F13. McDonalds remains a core holding with a solid risk/reward profile and defensible business model based on low operating leverage and a very high level of store profits to insulate against a sustained downturn. However, we save our most aggressive stance on the stock for either a material price pullback or significantly improved benefits from current plans." MCD closed at $89.34 on Thursday.