Stifel Nicolaus Reiterates Buy Rating for Yum! Brands (YUM)
Yum! Brands (NYSE:YUM)‘s stock had its “buy” rating reiterated by stock analysts at Stifel Nicolaus in a report issued on Wednesday, AnalystRatings.Net reports. They currently have a $95.00 target price on the stock, down from their previous target price of $105.00. Stifel Nicolaus’ target price indicates a potential upside of 32.55% from the company’s current price.
The analysts wrote, “Despite very bad news of September China comp trends of -11% (vs. consensus’ -6%E; our -3%E), we nevertheless believe that Buy-rated YUM shares represent an attractive value on this morning’s expected sub-$68 opening price given our unchanged view that YUM’s YRI/US divisions alone are worth at least $44/sh (or at least a BKW 2014E P/E of about 21X). If so, this morning’s implied price for YUM’s China/India divisions is less than $24/sh – or at a 2014E P/E of about 15X our new ‘further depressed’ 2014E EPS contribution of $1.55 (or at about the average P/E for a US company-owned casual-dining company (BLMN/DRI).”
Yum! Brands (NYSE:YUM) traded down 8.13% during mid-day trading on Wednesday, hitting $65.50. The stock had a trading volume of 11,211,087 shares. Yum! Brands has a 52 week low of $59.68 and a 52 week high of $75.13. The stock’s 50-day moving average is $71.61 and its 200-day moving average is $70.56. The company has a market cap of $29.228 billion and a price-to-earnings ratio of 23.28. Yum! Brands also saw unusually large options trading activity on Tuesday. Stock investors acquired 15,096 call options on the stock. This is an increase of approximately 519% compared to the average daily volume of 2,438 call options.
Yum! Brands (NYSE:YUM) last posted its quarterly earnings results on Wednesday, October 9th. The company reported $0.85 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.93 by $0.08. The company had revenue of $3.47 billion for the quarter, compared to the consensus estimate of $3.53 billion. During the same quarter last year, the company posted $0.99 earnings per share. Yum! Brands’s revenue was down 2.9% compared to the same quarter last year. Analysts expect that Yum! Brands will post $3.06 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Friday, November 1st. Investors of record on Friday, October 11th will be given a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a yield of 2.07%. The ex-dividend date of this dividend is Wednesday, October 9th. This is an increase from Yum! Brands’s previous quarterly dividend of $0.34.
YUM has been the subject of a number of other recent research reports. Analysts at Oppenheimer cut their price target on shares of Yum! Brands from $80.00 to $76.00 in a research note to investors on Wednesday. They now have an “outperform” rating on the stock. Separately, analysts at Jefferies Group cut their EPS estimates on shares of Yum! Brands in a research note on Tuesday. They now have a “hold” rating on the stock. Finally, analysts at Jefferies Group reiterated a “hold” rating on shares of Yum! Brands in a research note to investors on Tuesday, August 13th. They now have a $67.00 price target on the stock. Sixteen research analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. Yum! Brands presently has an average rating of “Hold” and a consensus price target of $74.05.
Yum! Brands, Inc (NYSE:YUM) is a quick service restaurant company based on number of system units, with approximately 37,000 units in more than 120 countries and territories.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.