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Fortune Brands Innovations: Sell Rating Due to Disappointing Q4 Earnings, Lowered EPS Guidance, and Macroeconomic Challenges

Fortune Brands Innovations: Sell Rating Due to Disappointing Q4 Earnings, Lowered EPS Guidance, and Macroeconomic Challenges

In a report released yesterday, Rafe Jadrosich from Bank of America Securities reiterated a Sell rating on Fortune Brands Innovations (FBINResearch Report), with a price target of $68.00.

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Rafe Jadrosich has given his Sell rating due to a combination of factors affecting Fortune Brands Innovations. The company’s fourth-quarter earnings for 2024 were below expectations, with missed targets across all three sales segments, particularly impacted by a downturn in the Security segment. Additionally, the full-year EPS guidance for 2025 was set below consensus, and the analyst has further lowered EPS forecasts for 2025 and 2026 due to weaker sales projections.
Jadrosich’s assessment also considered the challenging macroeconomic environment, with continued weak repair and remodel spending and a softer outlook for new construction. Despite the company’s premium valuation compared to its peers, the revenue and margins in the fourth quarter were below expectations, driven by softer demand and disruptions such as software outages. Consequently, the analyst maintained an Underperform rating, reflecting skepticism about the company’s ability to meet market expectations in the near term.

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