Goldman Sachs Feels Bullish After Interview with YUM CEO, Remains Neutral

After an interview with CEO David Novak, Goldman Sachs published an equity research commenting on the long-term growth prospects of Yum! Brands, Inc. YUM. Due to the concerns about the Chinese and US economy, analysts remain the Neutral rating, and maintain the price target of $59. Goldman feels more bullish on the long-term growth of the company. The new pressure testing in the Chinese system would likely to see growth in the future, but will not impact the near term. YUM also has a small number of units in India, which would likely to be the second largest market in 10 years. African units are also doing extremely well. With all these bullish indications, Goldman remains Neutral because of food inflation in China due to recent droughts, and Taco Bell in US remains weak. With 40% of profits coming from China, the recent macroeconomic tightening actions might slow down consumption. At the time of posting, shares of YUM were trading at $53.88.