UBS Maintains a 'Buy' on Yum! Brands (YUM); An Extreme Year
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Price: $152.99 +0.43%
Rating Summary:
19 Buy, 23 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
19 Buy, 23 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS maintains a 'Buy' on Yum! Brands (NYSE: YUM), PT increased by $1 to $63.
UBS analyst says, "Following better than expected 2Q EPS and sales, we are raising our 2011E and 2012E EPS to $2.85 (+13% YOY) and $3.23 (+13% YOY) respectively. Our target moves to $63 based on our higher sum of the parts (SOTP) value. 2011 has been a year of extremes with surprisingly strong sales and traffic growth (21% same store traffic growth in 2Q) in China and equally stunning profit decline from the US business ($52M YOY in 2Q US profit decline more than offset China’s $43M profit gain). We estimate that Yum China added ~50M visits YOY in 2Q."
"In 2H11, 2H11, we will be watching to see if 1) the US business—and Taco Bell in particular - can stabilize so that 2012 can benefit from easy 2011 comparisons (forecasting 17% US division profit decline in 2011) and 2) YRI business can continue to improve with particular help from a stabilizing Pizza Hut UK."
For more ratings news on Yum! Brands click here and for the rating history of Yum! Brands click here.
Shares of Yum! Brands closed at $55.58 yesterday.
UBS analyst says, "Following better than expected 2Q EPS and sales, we are raising our 2011E and 2012E EPS to $2.85 (+13% YOY) and $3.23 (+13% YOY) respectively. Our target moves to $63 based on our higher sum of the parts (SOTP) value. 2011 has been a year of extremes with surprisingly strong sales and traffic growth (21% same store traffic growth in 2Q) in China and equally stunning profit decline from the US business ($52M YOY in 2Q US profit decline more than offset China’s $43M profit gain). We estimate that Yum China added ~50M visits YOY in 2Q."
"In 2H11, 2H11, we will be watching to see if 1) the US business—and Taco Bell in particular - can stabilize so that 2012 can benefit from easy 2011 comparisons (forecasting 17% US division profit decline in 2011) and 2) YRI business can continue to improve with particular help from a stabilizing Pizza Hut UK."
For more ratings news on Yum! Brands click here and for the rating history of Yum! Brands click here.
Shares of Yum! Brands closed at $55.58 yesterday.
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