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

Despite all the concerns about the health of the Chinese economy, Yum! Brands, Inc. (NYSE: YUM) reported some surprisingly strong 1 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 maintained his Outperform rating and $88 price target and sees “attractive upside potential by owning YUM into its transformative separation.”

Stifel

Analyst Paul Westra called 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 noted 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 maintained a Neutral rating on Yum and has lowered its price target from $79 to $77.

Jefferies

Analyst Andy Barish said that Yum "remains a 'wait and see' story, particularly with the situation in China." The firm maintained a Hold rating and $75 price target for the stock.

Credit Suisse

Analyst Jason West pointed 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.