---
title: "M Stanley: YUM CHINA 3Q Growth Sustains; Rating Overweight"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294456510.md"
description: "Morgan Stanley maintains an Overweight rating on Yum China (YUMC) with a USD60 target price, citing sustained Q3 same-store sales growth and accelerated store expansion. The broker raised earnings forecasts for 2026-28 by up to 1% due to faster openings, excluding Pizza Hut acquisition impacts. It views the valuation as attractive, forecasting 10% and 15% CAGR for operating profit and EPS respectively from 2025 to 2027."
datetime: "2026-07-31T05:01:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294456510.md)
  - [en](https://longbridge.com/en/news/294456510.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294456510.md)
generator: "portal-rs"
---

# M Stanley: YUM CHINA 3Q Growth Sustains; Rating Overweight

YUM CHINA (09987.HK) +9.800 (+2.679%) Short selling $59.34M; Ratio 28.355% 's SSS target for 3Q was predicted to record positive growth, while July performance was in line with the company's expectations, Morgan Stanley said in a research report. Accelerated store expansion was expected to entail greater growth potential.

The broker reiterated its Overweight rating on Yum China Holdings, Inc. (YUMC.US) , with the target price unchanged at USD60, and continued to regard it as a top pick.

Morgan Stanley adjusted its earnings forecasts for 2026-28 by up to 1% to reflect a faster pace of store openings, which has yet to factor in the potential impact from the Pizza Hut acquisition. 

The broker considered the current valuation attractive and forecast CAGR of 10% and 15% for operating profit and EPS respectively from 2025 to 2027.  
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-31 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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## Related News & Research

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**