First half results were stronger than UBS expected, driven by 5.2% growth in KFC sales. The broker believes there is potential for materially accretive acquisitions with management open to extending its national footprint in KFC.
UBS upgrades forecasts. Rating is downgraded to Neutral from Buy on valuation grounds. Target is raised to $4.65 from $3.50.
Sector: Consumer Services.
Target price is $4.65.Current Price is $4.40. Difference: $0.25 – (brackets indicate current price is over target). If CKF meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).