UPDATE: Oppenheimer Cuts PT to $74 on Yum! Brands on Conservative 2013 Outlook

Oppenheimer reiterated its Outperform rating on Yum! Brands

but lowered the price target from $82.00 to $74.00. Oppenheimer said, "As uncertainty hangs over YUM's China business (43% of profits), we've sharpened our pencils and lower '13E below the Street's optimistic-looking estimates. Our analysis suggests '13 EPS growth is likely to trend below management's double-digit outlook as China sales weakness and associated margin de-leverage choke-hold the model. While the China issues appear transitory, visibility into timing the rebound is low and the probability of a downward reset in '13 EPS expectations appears high. We still favor long-term risk/reward and reset our price target to $74 (previously $82) supported by our base-case analysis." Yum! Brands closed at $66.87 on Friday.