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

, 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.