Yum! Brands (YUM) China Progress Remains Uncertain - Goldman
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Price: $140.06 -0.03%
Rating Summary:
16 Buy, 25 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 9 | New: 14
Rating Summary:
16 Buy, 25 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 9 | New: 14
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On Monday Yum! Brands (NYSE: YUM) brands reported November China comps grew 1%, ahead of the consensus of -1%. It also reaffirmed 2014 guidance for EPS growth of 20%.
Commenting, Goldman Sachs analyst Michael Kelter said, "To the positive, we expect YUM's China SSS to recover to double-digit positive levels by 1Q14 against easy compares, and see upside potential to consensus EPS estimates. We forecast $3.71 next year (27% EPS growth in a bounce back year), comfortably ahead of the $3.57 Street estimate. This said, there is a great deal of uncertainty around the ultimate progression of China SSS (the primary lever in the model), and the shares appear full at 21x even our above-consensus 2014 EPS estimate. YUM has never sustainably traded above 20-22x NTM earnings."
Goldman Sachs has a Neutral rating on Yum! Brands with a price target of $73.00.
For an analyst ratings summary and ratings history on Yum! Brands (NYSE: YUM) click here. For more ratings news on Yum! Brands click here.
Shares of Yum! Brands closed at $77.71 yesterday.
Commenting, Goldman Sachs analyst Michael Kelter said, "To the positive, we expect YUM's China SSS to recover to double-digit positive levels by 1Q14 against easy compares, and see upside potential to consensus EPS estimates. We forecast $3.71 next year (27% EPS growth in a bounce back year), comfortably ahead of the $3.57 Street estimate. This said, there is a great deal of uncertainty around the ultimate progression of China SSS (the primary lever in the model), and the shares appear full at 21x even our above-consensus 2014 EPS estimate. YUM has never sustainably traded above 20-22x NTM earnings."
Goldman Sachs has a Neutral rating on Yum! Brands with a price target of $73.00.
For an analyst ratings summary and ratings history on Yum! Brands (NYSE: YUM) click here. For more ratings news on Yum! Brands click here.
Shares of Yum! Brands closed at $77.71 yesterday.
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