UPDATE: Nomura Upgrades 3M on Multiple Positive Factors
In a report published Wednesday, Nomura analyst Shannon O'Callaghan upgraded the rating on 3M Co. (NYSE: MMM) from Neutral to Buy, and raised the price target from $128.00 to $150.00.
In the report, Nomura noted, “Organic growth is accelerating, capital allocation is turning positive, and margins may even have room to rise a bit, all suggesting to us that EPS growth could surprise to the upside versus current consensus estimates for 2014 and 2015. We expect all of that to benefit 3M's P/E, driving a potentially expanded and sustained higher multiple for 3M under the current Thulin/Meline management team. We upgrade 3M from Neutral to Buy and raise our target price to $150 based on ~18x our 2015 EPS estimate of $8.35.”
3M Co. closed on Tuesday at $127.55.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.