Fed Cut Could Lift Chinese Stocks. Here’s Who Could Benefit.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 27 2024
0mins
Source: Barron's
Economic Outlook for China: Despite a struggling economy and geopolitical tensions, some analysts believe that a potential rate cut by the Federal Reserve and a weakening U.S. dollar could make Chinese stocks more attractive to investors, especially given their current low valuations.
Investment Strategies in China: Investors are advised to focus on companies with strong domestic market positions and resilience to U.S.-China tensions, such as Great Wall Motor and Alibaba, while remaining cautious of ongoing structural challenges in the Chinese market.
Analyst Views on YUMC
Wall Street analysts forecast YUMC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for YUMC is 56.44 USD with a low forecast of 53.06 USD and a high forecast of 61.58 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
15 Buy
1 Hold
0 Sell
Strong Buy
Current: 49.370
Low
53.06
Averages
56.44
High
61.58
Current: 49.370
Low
53.06
Averages
56.44
High
61.58
About YUMC
Yum China Holdings Inc is a holding company principally engaged in the restaurant operation business. The Company operates three segments, including KFC, Pizza Hut, and All Other segment. KFC segment operates quick-service restaurant, providing original recipe chicken, whole chicken and other chicken products as well as beef burgers, pork, seafood, rice dishes, congees, fresh vegetables, desserts, coffee, tea and many other products. Pizza Hut segment operates casual dining restaurant, offering multiple dayparts, including breakfast, lunch, afternoon tea and dinner. All Other segment includes the operations of Lavazza, Huang Ji Huang, Little Sheep and Taco Bell, delivery operation and e-commerce business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
