UBS Stays Bullish on Yum! Brands, Despite China Troubles (YUM)

By Staff,

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Quick service restaurant (QSR) operator Yum! Brands, Inc. ( YUM ) late Thursday caught some continued bullish support from analysts at UBS.

The firm reiterated its "Buy" rating and $81 price target on UBS, suggesting a solid 28% upside to the stock's Thursday closing price of $63.14.

However, UBS noted concerns in China for the company. The analyst wonders whether YUM's attempts to grow its presence in Chinese markets is worth the cost. Recently, reports surfaced that a Chinese company that had invested in a YUM subsidiary was pulling its plans for any further investments in China.

Yum! Brands shares were mostly flat in premarket trading Friday.

The Bottom Line
Shares of Yum Brands ( YUM ) have a 1.81% dividend yield, based on last night's closing stock price of $63.14. The stock has technical support in the $57-$60 price area. If the shares can firm up, we see overhead resistance around the $67-$68 price levels.

Yum! Brands, Inc. ( YUM ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: YUM

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