Yum! Brands (YUM) Numbers Lifted at RBC Capital on China Recovery

RBC Capital analyst David Palmer lilted estimates and his price target on Top Pick-rated Yum! Brands (NYSE: YUM) to $103.00 (from $93.00) following meetings with management and reflects the impact of a China business recovery on EPS and the multiple.

"We are raising our price target for Yum! Brands from $93 to $103 and our 2015 and 2016 EPS estimates from $3.50 and $4.20 to $3.52 (+14% YOY) and $4.22 (+20% YOY)," Palmer commented. "Our higher price target reflects both 1) higher EPS estimates, which imply above-consensus EPS growth as China’s recovery leverages a lower cost structure, and 2) the recovery allows the market to appreciate a healthy global franchised business. Our price target equates to ~24x our 2016E EPS."

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 $90.79 yesterday.

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