Cowen analysts raised the value of Yum shares
2022.12.05 12:51
Cowen analysts raised the value of Yum shares
Budrigannews.com – The Yum! stock price target was raised by Cowen analysts. Companies (NYSE:) to $155 from $130, claiming that it is one of the company’s best 2023 ideas.
The stock is currently rated Outperform by the company.Examiners told financial backers in an exploration note that “YUM’s differentiated, resource light plan of action positions the stock well as expansion stays raised.”
“Given a 12% 2022-25E EPS CAGR and a 2% dividend yield, as well as room for multiple expansion, we consider YUM to be attractive in terms of total shareholder return.”Sustained system net restaurant development in excess of 4%-5% long-term guidance that prompts a guidance raise and upside to Taco Bell comps are, in our opinion, the most tangible opportunities for multiple expansion.
“We view Taco Bell U.S. as the crown jewel of YUM’s portfolio,” the analysts wrote. “Taco Bell U.S. is the largest of YUM’s 290+ brand/country combinations and represents 30% of operating profits.”
They went on to say that “Taco Bell U.S. (30% of EBIT) SSS upside & China (15% of EBIT) reopening potential” are the most important 2023 catalysts.Likewise, they accept the December 13 financial backer gathering presents a “positive impetus for shares in the event that drawn out direction for yearly net café improvement is raised to 5%-6% from 4%-5%.”
According to the analysts, “We see opportunities for upside as the brand balances value and premium menu innovation,” as well as “to a lesser extent benefiting from sales that over-index to late night (8 PM – close), where the brand is having an easier time staffing compared to peers.” These sales are occurring during the evening hours.
