Analysts at Bank of America on Thursday raised their price target for quick service restaurant operator Yum! Brands, Inc. ( YUM ).
The firm reiterated its "Buy" rating for YUM and lifted its price target by $1 to $67. That new target suggests a 20% upside to the stock's Wednesday closing price of $56.04.
A BofA analyst commented, "Comparisons in 2012 are obviously very difficult but recent pricing moves have pushed year over year pricing in China up 7% and product (as opposed to pricing) adjustments to KFC China's value menu could yield another effective 2%-3% increase in pricing. Given expected transaction growth around breakfast, delivery and extended hours and the potential for high single digit pricing, Yum could post double digit same store sales growth in China again in 2012."
Yum! Brands shares were unchanged in premarket trading Thursday.
The Bottom Line
Shares of Yum Brands ( YUM ) have a 2.03% dividend yield, based on last night's closing stock price of $56.04. The stock has technical support in the $52-$53 price area. The stock is trading right near all-time highs and has little overhead resistance.
Yum! Brands, Inc. ( YUM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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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