UPDATE: Deutsche Bank Raises Target to $66 on Yum Brands

Deutsche Bank reiterates its Hold rating on Yum Brands (NYSE: YUM) as stock appears to have valued the company's strong finish in 2011, but raises its price target to $66 from $62.

Deutsche Bank says, "Playing out as the bulls expected. YUM posted a strong finish to 2011, with 17% core EBIT growth, by far the best qtr. of the year. For 2012, China comps are likely to remain strong on the back of massive wage inflation, and the US will benefit from easy compares. However, this good news is well understood by the market and with the stock approaching 20x P/E (5-yr high = 21x), we are hesitant to chase it here."

YUM closed at $64.44 a share on Wednesday.