UPDATE: Jefferies Raises PT to $60 on YUM! Brands

Jefferies reiterates its Hold rating on YUM! Brands (NYSE: YUM) and raises its price target by $5 to $60 a share as its two businesses, China and TB start the year right.

Jefferies says, "YUM up on China 4Q SSS of 21% vs. con. 16.3%. EPS $0.75 ($0.02 beat) as China & US SSS helped offset food/labor infl. China Jan SSS trending in dbl-digits & '12 guide for +10% EPS ($3.16) maintained, w. margin pressure easing in 2H on accelerated devel./some cost relief. We believe YUM continues to be fully valued, but given sustained China momentum, revise '12 EPS to $3.18 (fr. $3.15) & raise our PT to $60 (fr. $55)."

YUM closed at $65.02 a share on Tuesday.