Yum! (YUM) Shares Lower as Goldman Cuts Price Target to $68 Amid China Concern

July 3, 2012 10:13 AM EDT
Get Alerts YUM Hot Sheet
Price: $64.17 --0%

Rating Summary:
    16 Buy, 11 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 16 | New: 54
Trade YUM Now!
Join SI Premium – FREE
A concerning research note from Goldman Sachs is weighing on shares of Yum! (NYSE: YUM) Tuesday morning. The stock last traded at $62.22, down more than 2.7 percent from Monday's close.

Goldman reduced FY12-FY14 estimates on Yum!, as well as the stock's price target. The firm now sees shares trading to $68 over the next year, down from a prior price target of $78. Goldman cut its FY12, FY13, and FY14 EPS estimates from $3.36, $3.93, and $4.45 to $3.27, $3.73, and $4.21, respectively.

Goldman believes Yum!'s "forward trajectory has become increasingly murky given the fact that its P&L is highly levered to China at a time of uncertainty in that geography." The firm said while it does like Yum!'s long-term emerging market expansion story, it does not believe now is the "right time to deploy fresh capital towards the shares."

The firm maintains a Neutral rating on shares of Yum!.

Visit our Analyst Ratings page to track all the market-moving analyst calls.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change

Add Your Comment