Buy Yum Brands as it explores sale of Pizza Hut, says Evercore ISI

Sometimes less is more, and that may be the case for Yum Brands , according to Evercore ISI. The firm upgraded the fast-food conglomerate to outperform from in line. It also hiked its price target to $180 from $165, signaling 20% upside from Tuesday's close. The rating change comes a day after Yum Brands said it was exploring strategic options for its struggling Pizza Hut business, including a sale. Offloading that franchise could give the stock a long-term boost, analyst David Palmer wrote. "With an anticipated sale of Pizza Hut, our 2027e EPS drops from $7.64 to ~$7.10. That said, after the spin-off, we are modeling higher—and more consistent—profit growth," Palmer said in a note to clients. "Given low capital intensity and potential proceeds from a Pizza Hut sale—our base case is a low