UPDATE: Bank of America Merrill Lynch Reiterates Buy Rating, Lowers PT on Yum! Brands
In a report published Friday, Bank of America Merrill Lynch reiterated its Buy rating on Yum! Brands (NYSE: YUM), but lowered its price target from $79.00 to $76.00.
BofA Merrill Lynch noted, “We continue to rate Yum shares Buy but are lowering our price objective from $79 to $76 given current softness in China sales trends that affect the expected earnings contribution from this high growth/high multiple business. We are raising our 2013 EPS estimate from $3.58 to $3.66 but remain below our $3.70 estimate in place before Yum's disappointing China sales update last week. We are somewhat more positive in our earnings estimates for Yum Restaurants Int'l (YRI) and for China with a cushion on G&A estimates versus guidance to balance what we expect to be a second half China recovery.”
Yum! Brands closed on Thursday at $66.92.
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|Sep 2014||JP Morgan||Maintains||Neutral|
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