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UPDATE: Morgan Stanley Downgrades 3M on Increasing Negative Outlook

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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

DateFirmActionFromTo
Oct 2014BarclaysMaintainsEqual-weight
Oct 2014Morgan StanleyMaintainsUnderweight
Sep 2014Stifel NicolausInitiates Coverage onHold

View More Analyst Ratings for MMM
View the Latest Analyst Ratings

Posted-In: Morgan Stanley Nigel CoeAnalyst Color Downgrades Analyst Ratings

 

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