UPDATE: Morgan Stanley Downgrades 3M on Increasing Negative Outlook
In a report published Monday, Morgan Stanley analyst Nigel Coe downgraded the rating on 3M Co. (NYSE: MMM) from Equal-Weight to Underweight, and lowered the price target from $123.00 to $122.00.
In the report, Morgan Stanley noted, “Attractive end market footprint. MMM has the most global sales mix in the group with defendable market position. However, 3M tends to show below-average core growth in cyclical upswings. As such, we expect the company to underperform EE/MI peers over the next two years, as we enter the reacceleration phase of this mid cycle slowdown, Limited operating leverage, with margins at peakish levels. This is endorsed by management's commitment to reinvest productivity and other OM benefits. We see risk of multiple compression, given the outlook for below average earnings growth through the balance of this cycle.”
3M closed on Friday at $133.51.
Latest Ratings for MMM
|Sep 2015||Credit Suisse||Upgrades||Neutral||Outperform|
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