Goldman Sachs analyst Jared Garber double upgraded Yum! Brands (YUM) to Buy from Sell with a price target of $135, up from $125. The company’s “highly-franchised model provides relative insulation” from the macro volatility, Garber tells investors in a research note. The analyst’s analysis of market-by-market growth across Yum’s brands suggests the company can drive unit growth ahead of its long-term algorithm of 4%-5% for the next two years. He sees “valuation support” from the stock’s relative valuation versus McDonald’s (MCD) and free cash flow/dividend yield versus peers, and views the model as defensive in a slowing macro backdrop.
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