Market Overview

UPDATE: Deutsche Bank Upgrades Yum! Brands as Top Pick for 2014

Share:
Related YUM
Markets Move Higher But With Cautious Tone Ahead Of Fed Decision
Top Chefs Choose Their Favorite Fast Food
Let's Get This Party Going! Fed Reserve Decision May Provide Fireworks (Seeking Alpha)

In a report published Friday, Deutsche Bank analyst Jason West upgraded the rating on Yum! Brands (NYSE: YUM) from Hold to Buy, and raised the price target from $72.00 to $90.00.

In the report, Deutsche Bank noted, “We see a favorable risk-reward (~35% upside, ~7% downside) as earnings growth reaccelerates over the coming qtrs. Plus, with many restaurant cos. trading at cyclically high multiples against peak earnings, YUM is one of the few names combining above-avg. EPS growth and room for multiple expansion into 2014. YUM's story is also supported by steady franchise royalty income from the US/YRI segments, which are ~90% franchised and generate ~2/3 of YUM's profits. Additionally, the YUM portfolio offers significant free cash flow (even in down yrs.). $90 PT. Buy.”

Yum! Brands closed on Thursday at $74.92.

Latest Ratings for YUM

DateFirmActionFromTo
Jul 2016BarclaysMaintainsEqualweight
Jul 2016JP MorganMaintainsOverweight
Jul 2016NomuraMaintainsBuy

View More Analyst Ratings for YUM
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Jason WestAnalyst Color Upgrades Analyst Ratings

 

Related Articles (YUM)

View Comments and Join the Discussion!