Deutsche Bank analyst Joe Ahlersmeyer removed Fortune Brands Innovations from his "Top Picks" following the spinoff last week of the cabinets business into Fortune Brands Home & Security. The spinoff failed to catalyze Fortune’s full potential valuation in advance of the spin, Ahlersmeyer tells investors in a research note. The analyst says Fortune Brands Innovations post-spin is a less-cyclical, higher-margin business with an opportunity to generate "sustainable and higher-quality earnings growth over time." He keeps a Buy rating on the shares with a $65 price target.
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Published first on TheFly