11:30 AM EDT, 10/09/2024 (MT Newswires) -- Yum! Brands ( YUM ) is likely to deliver "in-line" earnings in Q3 and Q4, indicating a more balanced near-term risk and reward into the Nov. 5 results release, Oppenheimer said in a Wednesday note.

Oppenheimer analysts Brian Bittner and Michael Tamas said the company's guidance for over 8% core EBIT growth for 2024 seems achievable with strong cost controls and easier same-store sales comparisons in the second half of 2024.

"However, headwinds to earnings upside persist based on our work and due-diligence," they said, pointing a lack of Middle-East rebound in SSS and store re-openings.

For Q3, Oppenheimer projects SSS of -0.1% and EPS of $1.40, against the Street estimates of +0.3% and $1.42, respectively.

Still, Oppenheimer kept its outperform rating on the stock with a price target of $154.

"Our Outperform rating is maintained owing to a more attractive setup into 2025 when the path for sales/profit upside becomes more clear and catalytic," the analysts said.

Price: 135.40, Change: +0.68, Percent Change: +0.50