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Yum Brands upgraded by Credit Suisse on China spinoff, buybacks

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Daniel Acker | Bloomberg | Getty Images

Credit Suisse raised its rating for Yum Brands shares to outperform from neutral, citing the company's aggressive new financial goals presented at its recent analyst day.

Yum Brands is in the process of splitting off its China business, which will trade as an independent company called Yum China next month.

"Our bullish outlook primarily applies to 'New Yum' (non-China), which will begin trading on a standalone basis on Nov 1, though we also see a favorable risk-reward in Yum China at the current multiple," analyst Jason West wrote in a note to clients Wednesday.

West's picks have a 9.3 percent a year average return and a 61 percent success rate for a profit, according to analyst ranking service TipRanks. That places him in the top 9 percent of all Wall Street analysts covering any industry.