UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on 3M

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on 3M

, but slightly lowered its price target from $95.00 to $94.00. Deutsche Bank noted, “Prices holding as raws drop. Margins solid but macro limits upside. Hold. 3M shares fell 4% as an in-line Q3 was overshadowed by Q4 guidance which came in 6% (midpoint) below consensus ($1.37-$1.45 vs $1.50). While slowing global growth is negatively impacting 3M's earnings, the impact is being partially mitigated by 3M's selling prices which are remaining resilient (up >1% in Q3) despite falling raw material costs (down >2% in Q3 vs flat in Q2). As a result 3M's operating margins expanded an impressive 140 bps in the quarter to 22.4%. However, with macro weakness limiting upside across the portfolio and valuation a fair 13.0x 13E EPS, and a 10% premium to S&P, Hold.” 3M closed on Tuesday at $88.73.