Yum! Brands (NYSE:YUM) has split opinion amongst Wall Street analysts, with Oppenheimer upgrading the stock to Outperform in a note to clients Friday. The rating increase clashes with Evercore ISI, which initiated a Tactical Underperform rating on the stock.
In the Evercore note, which you can read more of here, analysts said they have lowered their Pizza Hut US fourth quarter and first quarter same-store sales growth and expect below consensus 4Q same-store sales growth from Taco Bell.
However, Oppenheimer analysts, who have a $154 price target on the stock, said their updated analysis on the stock forces them to pounce on a "fresh opportunity to own YUM's high-quality unit growth, reliable earnings momentum, and crown-jewel assets," including KFC-International and Taco Bell US.
"Plus, investor expectations appear low owing to near-term SSS worries, and we'd take advantage. Our '24E/'25E EPS is now above consensus against a discounted 22x P/E valuation (-12% vs average)," said the analysts.