Yum! Brands downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Yum! Brands (YUM) to Equal Weight from Overweight with a price target of $140, down from $158. Yum’s international exposure, long an advantage, has been a “mixed bag” in 2024, and that will continue in 2025, the analyst tells investors in a research note. Further, the firm says the company’s costs are already lean and were trimmed in 2024, and probably don’t offer too much upside for estimates in 2025. Morgan Stanley does not see much share downside from current levels, but says Yum’s lower multiple is warranted in today’s environment.