Oppenheimer Reiterates Outperform on Yum! Brands (YUM) - PT to $97

September 29, 2016 9:31 AM EDT
Get Alerts YUM Hot Sheet
Price: $64.44 --0%

Rating Summary:
    16 Buy, 11 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 15 | New: 18
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Oppenheimer reiterated an Outperform rating on Yum! Brands (NYSE: YUM), and raised the price target to $97.00 (from $96.00). Once the remainder of the company's $6.2B buybacks is completed, YUM will have reduced its share count by ~17% since announcing the split. Oppenheimer is expecting YUM to report 3Q EPS of $1.11, vs. Street's $1.09 in its 10/5 release.

Analyst Brian Bittner commented, "YUM remains one of our favorite Outperforms, despite its 23% year-to-date gain. Our updated sum-of-parts "base-case" supports $97/sh heading into the October 31 separation. But, this does not incorporate additional potential upside from: 1) an attractive G&A opportunity our analysis supports, 2) potential for larger-thanexpected capital returns post-separation at both entities, 3) continued earnings power restoration at YUM-China. Weak domestic industry trends are extremely topical, yet New-YUM will derive ~60% of profits and 90%+ of unit growth outside the US."

For an analyst ratings summary and ratings history on Yum! Brands click here. For more ratings news on Yum! Brands click here.

Shares of Yum! Brands closed at $90.22 yesterday.



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