UPDATE: Bank of America Downgrades Yum! Brands to Underperform, Lowers PT on Lower 2013/2014 Estimates

In a report published Tuesday, Bank of America analyst Joseph T. Buckley downgraded the rating on Yum! Brands

from Buy to Underperform, and lowered the price target from $80.00 to $60.00. In the report, Buckley noted, “We are lowering our rating on YUM shares from Buy to Underperform and lowering our price objective from $80 to $60. Our revised price objective is driven by lower 2013 and 2014 estimates, applying a lower near term valuation to Yum's China earnings, and shifting back to a focus that more equally weights 2013 and 2014 as opposed to focusing solely on the out year estimate. Lower valuation for China is driven by uncertainty about sales and earnings tied to late 2012 negative same store sales being exacerbated at the start of 2013 by chicken supply concerns and more recently by avian flu news. The latter had no discernible influence on 1Q (Jan./Feb.) sales in China (same store sales were down 20% for other reasons) but the impact on early April sales was described as ‘significant'.” Yum! Brands closed on Monday at $65.26.