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JMS Research Raises Estimates for Yum! Brands (YUM)

Posted: 7/9/2010 9:05:00 AM
Referenced Stocks: YUM

Quick service restaurant operator Yum! Brands, Inc. ( YUM ) saw its earnings estimates boosted on Friday by analysts at JMS Research, ahead of its scheduled earnings report on July 13th.

The firm also maintained its "Buy" rating on YUM and $46 price target, which represents a potential 15% upside to the stock's Thursday closing price of $39.98.

A JMS analyst commented, "We look for Yum Brands to report second-quarter EPS at or above the consensus projection of $0.54 when the company releases its latest earnings report after the market close on Tuesday, July 13th. With this note, we raise our Q2 estimate to $0.55 from $0.53…Also, given the higher anticipated base of earnings coming off of this year, we move up our 2011 EPS estimate by two cents, to $2.78, which matches consensus."

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

The Bottom Line
The company has a 2.10% dividend yield, based on last night's closing stock price of $39.98. The stock has technical support in the $36-$38 price area. If the shares can firm up, we see overhead resistance around the all-time high levels of $42 a share. We would remain on the sidelines for now.

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 .