Evercore ISI on Yum! Brands (YUM): 'a path to our $210 upside scenario (30x) as the new YUM becomes more evident'

Evercore ISI analyst David Palmer reiterated an Outperform rating and $190.00 price target on Yum! Brands (NYSE: YUM)

The analyst comments "Our view: Unburdened by Pizza Hut, YUM will be easier-to-manage, faster-growing, and capital-light. As we discussed in our report (HERE), YUM’s more consistent double-digit EPS growth (we estimate 13%+ long-term) should push its valuation toward that of premium large-cap franchised hotel stocks (HLT/MAR). Today's announced proceeds for the sale of Pizza Hut ($2.7B gross proceeds and $2.3B in net proceeds) largely matched our expectations. We continue to estimate ~9% EPS dilution from the sale. Concurrently, the Board approved an incremental $4B in share repurchase. We reiterate our Outperform rating and $190 target (~27x post–Pizza Hut 2027e EPS of ~$7.00), with a path to our $210 upside scenario (30x) as the new YUM becomes more evident."

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 $154.67 yesterday.

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