YUMC - Jefferies cuts Yum China to Hold ahead of earnings

Just a week prior to its fourth quarter earnings release, Jefferies indicated it is stepping to the sidelines on Yum China Holdings ( NYSE: YUMC ) .

Equity analyst Annie Ling explained that the stock’s recent run has balanced the risk/reward dynamic and leaves her team unable to recommend the stock any longer. She added that same store sales, which are already expected to decline sharply year over year, could disappoint.

Ling assigned the stock a $64 price target alongside the downgrade to Hold from Buy. Shares of Yum China ( YUMC ) slipped 1.36% on Wednesday.

Read more on why Seeking Alpha contributor Mike Zaccardi similarly views the stock as expensive at present .

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