UPDATE: Deutsche Bank Upgrades Yum! Brands as Top Pick for 2014

In a report published Friday, Deutsche Bank analyst Jason West upgraded the rating on

from Hold to Buy, and raised the price target from $72.00 to $90.00. In the report, Deutsche Bank noted, “We see a favorable risk-reward (~35% upside, ~7% downside) as earnings growth reaccelerates over the coming qtrs. Plus, with many restaurant cos. trading at cyclically high multiples against peak earnings, YUM is one of the few names combining above-avg. EPS growth and room for multiple expansion into 2014. YUM's story is also supported by steady franchise royalty income from the US/YRI segments, which are ~90% franchised and generate ~2/3 of YUM's profits. Additionally, the YUM portfolio offers significant free cash flow (even in down yrs.). $90 PT. Buy.” Yum! Brands closed on Thursday at $74.92.