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

July 3, 2012 10:13 AM EDT Send to a Friend
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Price: $69.13 -0.96%

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    13 Buy, 11 Hold, 0 Sell

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    Up: 0 | Down: 0 | New: 10
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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!.

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