Market Overview

UPDATE: YUM Brands Downgraded by Morgan Stanley on Slow China Sales

Related YUM
Stocks To Watch For September 15, 2014
McDonald's Corporation Sinks, Warns Q3 Net Hit By China Food Scare
Stocks Skid as Traders Eye Corporate News (Fox Business)

In a report published Thursday morning, Morgan Stanley analyst John Glass adjusted YUM! Brands (NYSE: YUM) rating, downgrading it to Equal-weight, also moving price target from $82 to $77.

The report noted, "While we still see YUM as a best-in-class play on emerging market consumers, we see risk to the company's ambitious goals for a 40% profit recovery in China in '14. It's not that this cannot happen, but we think the market is already discounting that it will happen (current consensus is calling for 24% increase in 14 EPS, above guidance of 20%)."

Glass highlighted potential reasons from the China slowdown included macro pressures from weakened consumer confidence, rapid unit expansion leading to some overlap, and possibly pricing increases.

YUM previously closed at $76.53 Wednesday and opened Thursday down to the $74.91 level.

Latest Ratings for YUM

DateFirmActionFromTo
Sep 2014JP MorganMaintainsNeutral
Sep 2014BarclaysMaintainsEqual-weight
Sep 2014UBSMaintainsBuy

View More Analyst Ratings for YUM
View the Latest Analyst Ratings

Posted-In: Downgrades Price Target Markets Analyst Ratings

 

Related Articles (YUM)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters