UPDATE: Goldman Sachs Upgrades Yum! Brands to Buy on China Inflection Outlook
Goldman Sachs raised its rating on Yum! Brands (NYSE: YUM) from Neutral to Buy and increased its price target from $67 to $77.
Goldman Sachs noted, "We upgrade YUM to Buy from Neutral with 14% potential upside to our new $77, 12-month price target. We see YUM as the premier emerging markets company in Restaurants, and believe that recent soft China SSS, and the resulting uncertainty, provide a good entry point. Our analysis suggests YUM's China deceleration is cyclical, not structural, and that stabilization in the China macro will likely drive a derivative turn in YUM's China business in the coming quarters."
Yum! Brands closed at $67.64 on Wednesday.
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