Yum!: Balance Sheet Opportunity Keep Stock Interesting, Says Oppenheimer

In a research report issued today, Oppenheimer analyst Brian Bittner assigned an Outperform rating on Yum! Brands (NYSE:YUM) with an $80 price target, following the company’s third-quarter earnings results. 

Bittner observed, “A sum-of-the-parts exercise gives the stock limited downside particularly when adding debt to the underlevered franchise piece outside of China. For 3Q, YUM posted an “operational” EPS miss owing to China restaurant margin pressure—consistent with our preview last week. EPS guidance reduction for 2014 implies $3.14-$3.26 vs. Street’s $3.32E.”

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 14.1% and a 69.0% success rate. Bittner has a 3.8% average return when recommending YUM, and is ranked #247 out of 3319 analysts.

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