FBR Capital Reiterates an 'Outperform' on 3M (MMM); Robust 1Q Suggests Growth Initiatives Bearing Fruit
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Price: $91.41 -0.66%
Rating Summary:
5 Buy, 19 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
5 Buy, 19 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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FBR Capital reiterates an 'Outperform' on 3M (NYSE: MMM), raises PT from $99 to $105.
FBR analyst says, "We would characterize 3M’s strong 1Q performance as a vindication of CEO George Buckley’s strategy, initiated several years ago to boost organic growth rate to 7%–8% or significantly higher than the company’s historical average of 4%. These initiatives showed in 1Q results in our view, where despite exceptionally tough comps (+19.2% in 1Q2010), 3M delivered solid +9% organic revenues. Growth was broad based across segments and geographies, coming ahead of our estimates in five of the company’s six segments and emerging markets up 24%. Other highlights included a return to more normal margins in Display & Graphics driven by a pickup in Commercial Graphics and in Optical film volume...With regard to the shares, we remain positive on the 3M growth story and as the company moves to a higher organic growth trajectory, we expect sustainable double-digit EPS growth with potential for valuation rerating. We are increasing our 2011/2012 EPS estimates from $6.15/$6.85 to $6.30/$7.00."
For more ratings news on 3M click here and for the rating history of 3M click here.
Shares of 3M closed at $95.94 yesterday.
FBR analyst says, "We would characterize 3M’s strong 1Q performance as a vindication of CEO George Buckley’s strategy, initiated several years ago to boost organic growth rate to 7%–8% or significantly higher than the company’s historical average of 4%. These initiatives showed in 1Q results in our view, where despite exceptionally tough comps (+19.2% in 1Q2010), 3M delivered solid +9% organic revenues. Growth was broad based across segments and geographies, coming ahead of our estimates in five of the company’s six segments and emerging markets up 24%. Other highlights included a return to more normal margins in Display & Graphics driven by a pickup in Commercial Graphics and in Optical film volume...With regard to the shares, we remain positive on the 3M growth story and as the company moves to a higher organic growth trajectory, we expect sustainable double-digit EPS growth with potential for valuation rerating. We are increasing our 2011/2012 EPS estimates from $6.15/$6.85 to $6.30/$7.00."
For more ratings news on 3M click here and for the rating history of 3M click here.
Shares of 3M closed at $95.94 yesterday.
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