RBC Capital lowered the firm’s price target on Fortune Brands (FBIN) to $61 from $62 and keeps an Outperform rating on the shares. The Financial Times reported that Fortune Brands has agreed to launch a new CEO search, replacing prior plans for Amit Banati to assume the role, and to add activist investor Ed Garden to its board in order to avoid a potential proxy fight, the analyst tells investors in a research note. Garden’s involvement appears headed toward a settlement, which would be a net positive if constructive, though the ultimate impact will depend on CEO selection, strategic direction, and execution, all of which will take time to play out, RBC Capital says.
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