Deutsche Bank On Yum: 'You Can't Always Get What You Yuant'

In a report published Friday, Deutsche Bank analyst Karen Short initiated coverage of

with a Hold rating and a price target of $90. Yum's growth prospects continue to be driven by the company's innovative marketing, financial discipline and operational execution. However, the company's lack of consistency is a concern area. "After years of consistent and predictable earnings growth, the company has experienced greater volatility due to its China operations," analyst Karen Short pointed out. The company has a powerful portfolio of brands which place it in an enviable position. "There is still work to be done to drive results and return the company's divisions to at or above LT growth targets. The company remains as focused on capital and returns as ever," Short added. The company's share price has risen by ~26 percent in the current year so far and have already priced in expectations of a turnaround in its Chinese operations. The Deutsche Bank report noted that the Chinese turnaround was "taking longer than we believe the company had planned." Short expects Yum's shares to trade largely in line with its current multiple until the company produces more consistent earnings growth.