The Deerfield, IL-based holding company is engaged in the manufacture and sale of home and security products through its subsidiaries.
"Solid execution and balance sheet optionality are supportive, but this is partially baked in and re-leveraging may now be less-rewarded," Credit Suisse said in an analyst note. "Consensus may also fail to capture headwinds from Canada/FX (Plumbing, Cabs, Security) and China (Plumbing)."
The stock has a less favorable risk and reward under the firm's scenario analysis and its premium creates a high bar for relative earnings growth. If that growth were to slow, FBHS has further to drop, the firm added.
The company's stock closed up by 0.61% to $47.83 on Tuesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A+ on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: FBHS