Jefferies Keeps Fortune At Hold (FO)

Jefferies & Co is keeping its Hold rating and $50 price target Fortune Brands FO after the diversified consumer products maker reported second quarter earnings. In a note to clients Jefferies writes, [We are] "Holding FY 2010E despite 2Q upside due to a reduced 2H outlook. While 2Q results were ahead of our expectations management stated some upside may have borrowed from the 3Q, and we think increased investment spending across the board, higher material costs and adverse currency exchange could limit operating leverage." Shares of Fortune Brands, the maker of products such as Jim Beam whiskey and Titleist golf equipment are up 85 cents to $44.73 this morning.