Barclays Maintains an 'Equalweight' on Yum! Brands (YUM); 3Q11 Preview; China Concerns Overwhelm & Likely Overdone; Expect 10%+ EPS in '12
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Price: $151.32 -0.66%
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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Barclays maintains an 'Equalweight' on Yum! Brands (NYSE: YUM) price target of $54.00.
Barclays analyst says, "YUM will report 3Q11 results on 10/4 after market close. The portfolio benefits from global diversification, most recently with China strength offset by US weakness. With concerns of a broader China slowdown, YUM shares have underperformed of late. We believe such concerns are overdone, with no evidence of such during our September China visit. We expect modest upside to consensus 3Q EPS, reiteration of 12%+ EPS growth in '11, and initial guidance of 10%+ growth in '12. Investors have historically paid a premium for such consistent EPS and broader stability of QSR, though such has eased of late as many shy away from international exposure in the current macro. YUM trades at 16.5x versus the 11.5-20x 3-year range and 16.5x average."
"3Q11 Thoughts: We maintain our $0.84 EPS estimate, +15% y-y and $0.01 above the Street (guidance was not provided). We expect the thesis unchanged from 2Q, with China comp strength offset by US weakness (& YRI stability), while restaurant margins pressured in both regions."
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 $49.39 yesterday.
Barclays analyst says, "YUM will report 3Q11 results on 10/4 after market close. The portfolio benefits from global diversification, most recently with China strength offset by US weakness. With concerns of a broader China slowdown, YUM shares have underperformed of late. We believe such concerns are overdone, with no evidence of such during our September China visit. We expect modest upside to consensus 3Q EPS, reiteration of 12%+ EPS growth in '11, and initial guidance of 10%+ growth in '12. Investors have historically paid a premium for such consistent EPS and broader stability of QSR, though such has eased of late as many shy away from international exposure in the current macro. YUM trades at 16.5x versus the 11.5-20x 3-year range and 16.5x average."
"3Q11 Thoughts: We maintain our $0.84 EPS estimate, +15% y-y and $0.01 above the Street (guidance was not provided). We expect the thesis unchanged from 2Q, with China comp strength offset by US weakness (& YRI stability), while restaurant margins pressured in both regions."
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 $49.39 yesterday.
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