UPDATE: JPMorgan Raises Yum Brands PT on Closure of Shanghai FDA Investigation

In a report published Tuesday, JPMorgan maintained its Overweight rating on Yum! Brands Inc.

and raised its price target from $65 to $67. JP Morgan wrote, "Yum reported China monthly comps of +2% in February vs. the -13% implied by negative 25% 1Q guidance and our estimate. February included a midteens benefit from Chinese New Year (neutral to the quarter). The company reported a flat February comp at KFC after a -41% comp in January (adjusted for CNY, February would have been -15%, a sequential improvement vs. the -26% in January), and was about the highest result we could have foreseen...[C]losure of the Shanghai FDA investigation on January 25, as well as the company's recent practical and PR-oriented actions to eliminate certain small chicken suppliers and begin a food quality advertising campaign, appear to be helping reduce consumer backlash." Yum closed Monday at $67.84.