Oppenheimer Reiterates Outperform On Yum! Ahead Of 3Q Release And Guidance Update

In a research report released today, Oppenheimer analyst Brian Bittner reiterated an Outperform rating on Yum! Brands (NYSE:YUM) with an $80 price target.

Bittner commented: “We model “Street-low” ’14 EPS into next week’s 3Q release and guidance update. We believe China’s leaner cost structure is attractive, but it gives margins less padding during the recent sales drop-off. An SOTP analysis suggests valuation downside is limited, but the stock remains stuck until comps recover (negative into 4Q), ’15 earnings confidence rebounds and time without injury alleviates China operating risks (45% of profits).”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Bittner has a total average return of 15.1% and a 75.0% success rate. Bittner has a 5.8% average return when recommending YUM, and is ranked #224 out of 3314 analysts.

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