11:49 AM EST, 11/26/2024 (MT Newswires) -- Yum! Brands ( YUM ) seems well-positioned to achieve its core earnings before interest and taxes growth target of more than 8% for 2025, exceeding the market's 7% estimate, as the consensus underestimates the company's potential for accelerating global same-store sales growth, Oppenheimer said in a note Monday.

Analysts, including Brian Bittner, said that after reviewing the company's Q3 earnings, they see Yum! Brands ( YUM ) as "an actionable long idea for 2025."

The company's performance in 2025 could improve as it overcomes challenges following Middle East-related closures. The company also has better prospects in China compared to its competitors, according to the note.

Taco Bell, which contributes 37% of the company's profits, continues to perform well and is expected to achieve more than 3% SSS growth in 2025. For KFC ( YUM ), which contributes 50% of the company's profits, the Street's forecast of 1.9% SSS growth for 2025 is too conservative, the analysts added.

"We believe [Yum! Brands ( YUM )] represents a diversified business model that drives superior growth, yet is armed with blue-chip like resiliency. Our refreshed analysis highlights an attractive risk/reward profile given [Yum! Brands' ( YUM )] high-quality unit growth, reliable earnings momentum, and crown-jewel assets," the analysts said.

Oppenheimer reiterated its outperform rating on the stock, with a $154 price target.

Price: 137.76, Change: +0.71, Percent Change: +0.52