UPDATE: KeyBanc Upgrades Fortune Brands Home & Security to Buy on Strong Earnings Outlook

KeyBanc upgraded Fortune Brands Home & Security

from Hold to Buy and announced a $38.00 price target. KeyBanc said, "Our conviction to upgrade FBHS mirrors our view that sustained, upward earnings revisions are likely as: 1) its wholesaler/dealer exposure realizes superior growth to peers; 2) it delivers steady operating leverage of 30%; 3) 83% of sales to U.S. housing delivering a favorable product mix; 4) and capital is deployed given its 0% current net debt rate. Our $38 price target equals 15x/12x our 2013 EV/EBITDA and 31x/20x our earnings estimate, respectively." Fortune Brands Home & Security closed at $32.80 on Wednesday.