UPDATE: Nomura Upgrades 3M to Neutral on Management Execution
Nomura raised its rating on 3M (NYSE: MMM) from Reduce to Neutral and increased its price target from $88 to $96.
Nomura commented, “We have been skeptical of 3M‟s prior targets for accelerated organic growth. New management has set more conservative targets and has launched a prioritization strategy that we think could be more effective at boosting growth than the strategies of the past two regimes. 3M expects the combination of increased share repurchase and declines in tax rate and pension expense to contribute a combined 3%-4% to annual EPS growth from 2013-17. These tailwinds offer 3M flexibility to achieve the targeted 9%-11% EPS growth over the next five years, while reinvesting underlying margin improvements back into the business to the potential benefit of future organic growth."
3M closed at $88.55 on Thursday.
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