In a report published Wednesday, Deutsche Bank reiterated its Hold rating on 3M MMM, but slightly lowered its price target from $95.00 to $94.00.
Deutsche Bank noted, “Prices holding as raws drop. Margins solid but macro limits upside. Hold. 3M shares fell 4% as an in-line Q3 was overshadowed by Q4 guidance which came in 6% (midpoint) below consensus ($1.37-$1.45 vs $1.50). While slowing global growth is negatively impacting 3M's earnings, the impact is being partially mitigated by 3M's selling prices which are remaining resilient (up >1% in Q3) despite falling raw material costs (down >2% in Q3 vs flat in Q2). As a result 3M's operating margins expanded an impressive 140 bps in the quarter to 22.4%. However, with macro weakness limiting upside across the portfolio and valuation a fair 13.0x 13E EPS, and a 10% premium to S&P, Hold.”
3M closed on Tuesday at $88.73.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in