Goldman Sachs Reiterates Sell, $53 Target on Yum Brands

Goldman Sachs maintains its Sell rating and $53 target price on Yum Brands, Inc. (NYSE: YUM) as the company's long term growth is seen as dependent on China.

Goldman Sachs says, “The 2012 outlook for YUM's China division is unclear. To the positive, YUM has taken 4% pricing in 4Q11, and management plans to take price again in 1H12. We believe these future plans imply traffic growth has held up despite the 4Q11 pricing. To the negative, however, recent deterioration in Chinese economic indicators adds uncertainty to forward trends. Our analysis suggests YUM China SSS track with China GDP, which GS economists expect to slow meaningfully in 2012.”

YUM closed at $58.01 a share on Wednesday.