Truist Financial analyst Keith Hughes downgraded the rating on Fortune Brands Innovations to a Hold today, setting a price target of $60.00.
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Keith Hughes has given his Hold rating due to a combination of factors, primarily driven by the recent rally in Fortune Brands Innovations’ stock, which was influenced by speculation of interest rate cuts. Despite this rally, the company’s fundamentals have faced more pressure than anticipated, particularly due to significant declines in its China business that may not recover alongside a U.S. economic rebound.
Additionally, while Fortune Brands Innovations has engaged in mergers and acquisitions and other internal initiatives, its earnings per share have decreased, contrasting with gains seen by its peer, Masco. This has resulted in a compression of the stock’s valuation multiple, which is unlikely to change in the near term. Although there is potential for improvement with a market cycle turn, Hughes sees more promising opportunities in other stocks, leading to a lowered price target of $60 from $65.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FBIN in relation to earlier this year.