UPDATE: Goldman Sachs Upgrades Yum! Brands to Buy on China Inflection Outlook

Goldman Sachs raised its rating on Yum! Brands

from Neutral to Buy and increased its price target from $67 to $77. Goldman Sachs noted, "We upgrade YUM to Buy from Neutral with 14% potential upside to our new $77, 12-month price target. We see YUM as the premier emerging markets company in Restaurants, and believe that recent soft China SSS, and the resulting uncertainty, provide a good entry point. Our analysis suggests YUM's China deceleration is cyclical, not structural, and that stabilization in the China macro will likely drive a derivative turn in YUM's China business in the coming quarters." Yum! Brands closed at $67.64 on Wednesday.