NEW YORK (TheStreet) -- Shares of Yum! Brands, Inc. (YUM) are down -1.39% to $70.49 in early market trading after analysts at UBS (UBS) lowered its price target to $85 from $90 on the restaurant company while maintaining a "buy" rating.
The firm said the lowered price target reflects the worse than feared China supplier issue for Yum! Brands, the parent company of KFC, Pizza Hut and Taco Bell.
UBS said long term prospects for global unit expansion remain intact, so therefore, it will maintain its "buy" rating on the stock.
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Separately, TheStreet Ratings team rates YUM BRANDS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YUM BRANDS INC (YUM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: