UPDATE: Oppenheimer Initiates Outperform, $82 PT on Yum Brands

Oppenheimer initiates its coverage on Yum Brands (NYSE YUM) with a rating of Outperform and a price target of $82 on the company's growth-oriented platform. Oppenheimer says, "Since October 2011, the stock is up 43% (vs. S&P's 28%), but our analysis suggests incremental upside to both earnings and valuation. We are attracted to the unique business model that continues to shift toward emerging economies (now 60% of profits) which boosts ROIC and could extend the double-digit earnings runway for several years. Importantly, company-specific tailwinds in China (~45% of profits) are powerful and appear uncorrelated to slowing GDP. The reliable free cash flow stream could generate well over $1 billion in 2012 and lead to earnings-accretive share buybacks and double-digit dividend raises." YUM closed at $68.40 a share on Friday.