Yum! China Sales Rise: What's Wall Street Think?

Despite all the concerns about the health of the Chinese economy, Yum! Brands, Inc. YUM reported some surprisingly strong 1.0 percent year-over-year sales growth in its China division in December. Here’s what five top Wall Street firms have to say about Yum following the news.

Oppenheimer
Analyst Brian Bittner maintains his Outperform rating and $88 price target and sees “attractive upside potential by owning YUM into its transformative separation.”

Stifel
Analyst Paul Westra calls the December sales numbers “better-than-feared” and doesn’t view China as a threat to the firm’s Buy rating or $100 price target for Yum.

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Baird
Analyst David Tarantino notes that “the extreme volatility in China market conditions and the recent pullback in valuations for asset-light restaurant businesses has caused us to take a more conservative approach with our valuation assumptions for YUM’s combined business.” Baird maintains a Neutral rating on Yum and has lowered its price target from $79 to $77.

Jefferies
Analyst Andy Barish says that Yum “remains a ‘wait and see’ story, particularly with the situation in China.” The firm maintains a Hold rating and $75 price target for the stock.

Credit Suisse
Analyst Jason West point out that “overall trends remain weak in China,” and maintains the firm’s Neutral rating and $76 price target for the stock.

Disclosure: the author holds no position in the stocks mentioned.