UPDATE: Morgan Stanley Raises PT to $113 on 3M Company on Short-Cycle Re-Acceleration

Morgan Stanley maintained 3M Company

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.