Fortune Brands’ Estimates Cut at Goldman Sachs (FO)

in Gold Gold Investment by admin — March 11, 2010 7:07 am | no comments

Liquor and golf products maker Fortune Brands, Inc. ( FO ) saw its earnings estimates lowered on Thursday by analysts at Goldman Sachs. The analyst lowered its estimates for FO through 2012, noting that the recent sale of its Cobra golf unit will likely eat into earnings. Goldman maintained its “Buy” rating and $50 price target on the stock, however, which had closed at $47.03 on Wednesday. Fortune Brands shares were mostly flat in premarket trading Thursday. The Bottom Line We had removed shares of FO from our “recommended” list back on Sept.30, when the stock was trading at $43.48. The company has a 1.62% dividend yield, based on last night’s closing stock price of $47.03. The stock has technical support in the $40-$42 price area. If the shares can firm up, we see overhead resistance around the $50-$54 price levels. We would remain on the sidelines for now. Fortune Brands, Inc. ( FO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .