UPDATE: Goldman Sachs Downgrades Yum China Holdings (YUMC) to Buy

April 19, 2021 4:17 PM EDT
Get Alerts YUMC Hot Sheet
Price: $60.93 -1.9%

Rating Summary:
    20 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 21 | Down: 16 | New: 44
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(Updated - April 19, 2021 4:32 PM EDT)

Goldman Sachs analyst Michelle Cheng downgraded Yum China Holdings (NYSE: YUMC) from Conviction Buy to Buy with a price target of $70.00.

The analyst comments "...we believe YUMC could continue to benefit from the SSSG recovery on top of its solid cost control. The recent Ching Ming holiday data suggested -9% vs 2019 level or a 145% yoy increase. While inflation remains a key focus for investors, we believe its solid execution track record in the past, strong relationships with upstream suppliers, and product innovation capabilities should help mitigate the potential risks. With strong lower-tier cities penetration upside especially for the KFC brand and stabilized Pizza Hut contribution, we maintain our BUY rating with a 12m SoTP-based TP of US$70/HK$541 (H-share). But we remove the stock from our Conviction List after the YTD outperformance as other stocks now offer higher upside from here."

For an analyst ratings summary and ratings history on Yum China Holdings click here. For more ratings news on Yum China Holdings click here.

Shares of Yum China Holdings closed at $60.10 yesterday.

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