UPDATE: Credit Suisse Initiates Neutral, $22 PT on Fortune Brands Home & Security

Credit Suisse initiates its coverage on Fortune Brands Home & Security

with a Neutral rating and a $22 price target as valuation offsets rising margins and improved spending. Credit Suisse says, "Strong and improving operations, likely upside to expectations: We are initiating coverage of Fortune Brands Home and Security with a Neutral rating and $22 target price. We expect rising sales and operating margins from the improving housing cycle (and resulting increase in remodeling spending), and from its initiatives to broaden its distribution with new products at large home centers. However, we rate Fortune as Neutral given that it trades at 9.1 times '13 EV/EBITDA and 19 times '13 EPS." FBHS closed at $21 yesterday.