Yum! Target Raised From $90 To $105: Oppenheimer Still Sees 'Multiple Ways To Win'

In a report published Monday, Oppenheimer analysts maintained an Outperform rating on

, while raising the price target from $90 to $105, saying they were now "more excited that fundamental upside lingers." The company's 2Q15 commentary reflected positive two-year trends. The analysts expect "at least double-digit comps" in the back half of the year. "Competition intensity is at its highest point in history, GDP growth is slower and online market is gaining steam. But the consumer is still strengthening and YUM displayed a compelling three-year operating plan," the analysts wrote. While the Street expects restaurant margins to be 17 percent through 2017, the analysts believe that this "under-appreciates pent-up operating leverage" and that in a full sales recovery scenario the company's margins could expand to 20 percent. In the report Oppenheimer noted, "It was very clear to us that the business operates like a standalone with self-funding abilities. Mgmt was not defensive about the potential of separating the China business, rather reiterated its commitment to restoring top-to-bottom fundamentals (and its commitment to improving shareholder value)."