Yum China upgraded to Buy at Jefferies following investor day

As previously reported, Jefferies upgraded Yum China to Buy from Hold with a price target of $71.30, up from $65.78 for the ADRs and a target of HK$556.40, up from HK$513.10, for the Hong Kong listed shares. Following an investor day in which Yum China mapped out its 2024-26 strategy, the firm went through its model and now expects EPS growth of 24%, 19% and 17% in the three years, the analyst tells investors. Focus is now on the three-year plan, in which the company aims to operate 20,000 stores by the end of 2026, while the $3B cash return target “offers a minimum return” that should be seen as positive by investors given macro uncertainties, the analyst added.