Analyst David Palmer maintained his Top Pick rating for Yum! Brands, Inc. (NYSE:YUM) with a price target of $94, marking a 9% increase from current levels. The analyst is maintaining this rating even though he is expecting a weak 2Q for Yum Brands and the global fast food industry as a whole. A major factor that led to Palmer’s rating is that “Yum Brand’s sum-of-the-parts value can move significantly higher after a leveraged recap of the business and the spin-off of Yum China as a franchisee.” Additionally, the analyst expects to see EPS increase over the next few years as Yum Brands plans to buy back one-third of its shares.

According to TipRanks, Palmer has a success rate of 70% with an average return of 10.4% per recommendation.