Oppenheimer Starts Yum! Brands (YUM) at Outperform, Sees More Upside
Tweet Send to a FriendGet Alerts YUM Hot Sheet
Price: $69.30 -0.76%
Rating Summary:
7 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
7 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade YUM Now!
Oppenheimer initiates coverage on Yum! Brands (NYSE: YUM) with a Outperform rating and $82 price target.
Despite the 43% move higher since October 2011, the firm's analysis suggests incremental upside to both earnings and valuation.
"We are attracted to the unique business model that continues to shift toward emerging economies (now 60% of profits) which boosts ROIC and could extend the double-digit earnings runway for several years," the analyst said. "Importantly, company-specific tailwinds in China (~45% of profits) are powerful and appear uncorrelated to slowing GDP. The reliable free cash flow stream could generate well over $1 billion in 2012 and lead to earnings-accretive share buybacks and double-digit dividend raises."
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 $68.40 yesterday, with a 52 week range of $47.15-$69.35.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Despite the 43% move higher since October 2011, the firm's analysis suggests incremental upside to both earnings and valuation.
"We are attracted to the unique business model that continues to shift toward emerging economies (now 60% of profits) which boosts ROIC and could extend the double-digit earnings runway for several years," the analyst said. "Importantly, company-specific tailwinds in China (~45% of profits) are powerful and appear uncorrelated to slowing GDP. The reliable free cash flow stream could generate well over $1 billion in 2012 and lead to earnings-accretive share buybacks and double-digit dividend raises."
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 $68.40 yesterday, with a 52 week range of $47.15-$69.35.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Yum! Brands to Present at Sanford C. Bernstein Conference
- Hewlett-Packard Company (HPQ) Tops Q2 EPS by 6c as Sales Slide 10%
- Topeka Capital Starts Cavium Networks (CAVM) at Hold
Create E-mail Alert Related Categories
Hot New Coverage, New CoverageRelated Entities
Dividend, Earnings
Login with Facebook
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!
