NEW YORK (TheStreet) -- Yum! Brands (YUM) shares are up 0.7% to $74.49 in early market trading after the Taco Bell and Pizza Hut restaurant operator was upgraded to "buy" from "neutral" by analysts at Janney Capital on Thursday.
The firm also raised the company's price target to $88 from $68, which represents a potential upside of 19% from the stock's previous closing price of $73.97.
Analysts at the firm made a value call on the company saying that as the brunt of its issues with meat safety in China subside, the stock's upside will increases. Yum! Brands was caught in the same food safety scandal that McDonalds (MCD) was earlier this year after Chinese inspectors discovered one of their meat suppliers was using tainted meat.
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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 number of 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 compelling growth in net income, reasonable valuation levels, notable return on equity, impressive record of earnings per share growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins."