JP Morgan Drops Price Target for Fortune Brands (FO)

JP Morgan analysts Michael Rehaut and Jason Marcus lowered their price target for Fortune Brands FO by a dollar, from $50 to $49 following the company's Q2 conference call. Fortune Brands is a holding company that produces distilled spirits, home and security products, and golf products. The analysts said, "the company continues to expect overall global growth to be up 1-2% for 2010, and noted the global market increased more than that in 1H10, with growth in the U.S. up 2-3%. Furthermore, FO pointed to its continued commitment to increasing brand and strategic investments to drive long-term growth and gain market share. However, FO expects operating margins in 2H10 to reflect a hit of $10-$15 million as a result of foreign currency, and as a result lowered its 2010 operating margin guidance to be 50-100 bps below its previous guidance of 23%." JP Morgan gives Fortune Brands a Neutral rating, and a price target of $49. Shares of FO are currently trading at $43.88.