Stifel Lowers Price Target on Yum! Brands, Inc.

In a note released Wednesday morning, Stifel analyst Paul Westra maintained a Buy rating on Yum! Brands, Inc. YUM, but cut the price target from $110 to $105.

Westra explained even though the company posted a miss on its third quarter earnings report, the results were "not wholly unexpected." Furthermore, he noted the miss was driven by poor operating profits in China and below consensus operating margins.

In defense of Yum's China business, Westra wrote, "We are uncertain in how long the current China same-store-sales slump will last; however, the bottom line is that YUM China remains one of the best retail businesses on the globe, representing a five-fold unit-growth opportunity."

Following the release of the Stifel note, shares of Yum! Brands, Inc. were trading up less than 1 percent.