BTIG Affirms Yum! Brands (YUM) at 'Neutral'; Says Yum China Stake Sale Valuation Below Expectations
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
BTIG affirms Yum! Brands (NYSE: YUM) with a Neutral rating following news that it would sell a portion of Yum China today.
Analyst Peter Saleh commented today,
We remain Neutral rated on Yum! as the initial minority investment in the China division values the segment at ~$8B-$10B, below the $12B-$14B we believe is necessary to support the current multiple. With that said, we expect significant share repurchase leading up to the separation on October 31st to continue to support the share price. Looking ahead, we believe Yum! can sustain ~10% EPS growth on a consistent basis, including in 2017 despite lapping the extra week, but don’t see enough upside to become more positive.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BTIG Cuts PT on Workday (WDAY) to $88 Following Q3 Results; Affirms at 'Buy'
- Jefferies Cuts Price Target on PG&E Corp. (PCG) to $65 Following Rate Case Decision
- Mizuho Securities Adjusts Estimates Following Gap, Inc. (GPS) Comp Miss
Create E-mail Alert Related CategoriesAnalyst Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!