Yum China downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Yum China to Neutral from Overweight with a price target of $38, down from $65. Yum China stands out from its peers on supply chain, store operation and innovation and the firm remains positive on the company’s long-term outlook. However, the firm has increasing concerns about near-term fundamentals, which have been hit by the headwinds of China’s slowing demand growth and thinks “no player is immune” to “inevitable” sector-wide price and margin erosion, the analyst tells investors.