In a report released today, Chen Luo from Bank of America Securities maintained a Buy rating on Yum China Holdings (YUMC – Research Report), with a price target of $53.60.
Chen Luo has given his Buy rating due to a combination of factors, including Yum China Holdings’ proactive strategies and its solid foundation in the Chinese market. Investors have shown optimism regarding the company’s long-term prospects, underscored by its resilience and the quality of its management. Luo acknowledges the tough competitive landscape in the industry but notes that competition has not intensified further, which could be advantageous for Yum China Holdings.
The company’s ability to balance expansion with maintaining customer traffic and profit margins has been particularly impressive, suggesting that these efforts will reflect positively in future earnings reports. Furthermore, Yum China’s commitment to delivering shareholder value, coupled with its strategic advantages such as scale and cost control, supports the buy rating. Luo also recognizes the company’s potential to benefit from continued investment inflows due to positive trends in China’s market.
In another report released on February 15, CLSA also maintained a Buy rating on the stock with a $46.00 price target.
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Yum China Holdings (YUMC) Company Description:
Founded in 2016, Yum China Holdings, Inc. operates and franchises restaurants and fast food chains in China. The company operates through two segments: Kentucky Fried Chicken (KFC), and Pizza Hut.
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