The Louisville, KY-based restaurant company, which operates quick-serve names like KFC, Pizza Hut and Taco Bell, is planning to spin-off its Yum China division in October.
The Chinese unit will operate 7,200 restaurants in more than 1,100 cities and will be listed under the symbol "YUMC" on the NYSE.
"Yum China screens reasonably cheap in light of improving trends and peer comparisons," the firm said of the upcoming spin-off.
The firm noted that Wall Street remains "skeptical" of the company's ability to grow in an increasingly crowded Chinese restaurant market, despite the "cheap" valuation of Yum China.
Credit Suisse added that it expects to see upside to Yum Brands' general and administrating savings in 2017 as the company "tightens its belt."
"However, we do not see enough upside vs. the current stock price to change our Neutral rating on Yum Brands at this time," Credit Suisse added.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.
You can view the full analysis from the report here: YUM