UPDATE: Morgan Stanley Downgrades 3M to Equal-Weight on Balanced Risk/Reward
In a report published Monday, Morgan Stanley analyst Nigel Coe downgraded the rating on 3M (NYSE: MMM) from Overweight to Equal-Weight, but reiterated the $112.00 price target.
In the report, Morgan Stanley noted, “For the last year, we have argued that 3M deserves to trade at premium to EE/MI peers, given its outsized emerging market exposure and defensive characteristics. This has largely played out, in our view, with the stock up 18% YTD, outperforming the group by 5ppts. 3M is now trading at 16x NTM EPS, 14% above its 1Y average and a 6% premium to EE/MI peers; the stock has historically traded in-line with the group.”
3M Co. closed on Friday at $110.07.
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