Baird analyst David Tarantino upgraded McDonald's to Outperform saying the stock's risk/reward has become more favorable following the year-to-date underperformance. The company's "attractive" dividend yield can help to limit further downside risk in the shares, Tarantino tells investors in a research note. The analyst, however, admits that slower U.S. industry demand trends and challenging upcoming comparisons pose a "short-term headwind." He upped his price target for McDonald's to $128 from $126. The burger chain closed yesterday up 97c to $115.41.