NEW YORK (TheStreet) -- Yum! Brands (YUM) - Get Report stock price target was increased to $88 from $87 at Oppenheimer before Wednesday's market open. The firm reiterated its "outperform" rating and called the Louisville, KY-based fast-food chain its "top large-cap pick."

After spinning off the China business later this year, Yum! Brands will generate most of its revenue from franchise fees, which will justify a healthy multiple for the stock, Oppenheimer analysts wrote in a note this morning.

"Some investors explain their desire to own new-YUM after the transformative split," analysts added. "Regardless of which 'piece' you see as attractive, we recommend owning shares today to take advantage of the [sum of the parts] discount into the transaction and of benefits from accelerated cash returns."

Additionally, Oppenheimer raised its earnings estimates to $3.60 from $3.54 per share for 2016 and to $4.10 from $4.03 per share for 2017 because of the company's aggressive stock buyback programs.

Yum! Brands stock closed up 0.96% to $80.57 on Tuesday.

Separately, Yum! Brands has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance.

You can view the full analysis from the report here: YUM

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 article's author.

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