UPDATE: Morgan Stanley Raises PT to $113 on 3M Company on Short-Cycle Re-Acceleration
Morgan Stanley maintained 3M Company (NYSE: MMM) at Overweight and raised the price target from $111.00 to $113.00.
Morgan Stanley analyst Nigel Coe noted, "Although we trim estimates to reflect sharp USD appreciation (especially vs. Yen), we bump up our PT from $111 to $113 as we continue to synchronize our target multiple with 3M's strong underlying DCF valuation. We believe 3M remains one of the most attractive plays on short cycle re-acceleration. … [V]aluation remains supportive at 15.5x 2013e EPS – largely in line with the group, but we believe that MMM should command a premium given its more stable and consistent earnings structure and significant balance sheet optionality."
3M Company closed at $106.40 on Friday.
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