UBS Ups Price Target on Yum! Brands (YUM)
UBS maintained a Buy on Yum! Brands (NYSE: Yum) and raised its price target to $84.00 (from $81.00).
Analysts said their higher estimates reflect higher unit growth in China, more favorable food costs, and slightly higher U.S. profits.
Analysts noted that Yum’s relative stock performance is 80 percent correlated with food inflation. As food inflation diminishes, analysts think Yum China profit growth will remain at 15 to 20 percent.
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 $70.99 yesterday, with a 52 week range of $50.60-$74.44.
Analysts said their higher estimates reflect higher unit growth in China, more favorable food costs, and slightly higher U.S. profits.
Analysts noted that Yum’s relative stock performance is 80 percent correlated with food inflation. As food inflation diminishes, analysts think Yum China profit growth will remain at 15 to 20 percent.
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 $70.99 yesterday, with a 52 week range of $50.60-$74.44.