UBS Maintains a 'Buy' on 3M (MMM); Q2: Organic Growth and LCD in Focus

UBS maintains a 'Buy' on 3M (NYSE: MMM), lowers PT from $108 to $103.

UBS analyst says, "3M's stock traded down yesterday despite in-line EPS and sales above consensus ($7.7B vs. $7.6B). We believe the stock’s performance was attributable to decelerating organic growth rates, issues at the LCD Optical Film business, and guidance that was disappointing vs. consensus expectations. Management did reiterate its FY11 +6-7.5% organic volume growth guidance; however, investors appear skeptical of this target given the uncertain global macro outlook for 2H11 and the recurring LCD issues. We believe these issues could remain an over hang on the stock for the remainder of 2011." (UBS lowers FY11/12 EPS estimate by $0.05 to $6.15 and $6.85, respectively)

For more ratings news on 3M click here and for the rating history of 3M click here.

Shares of 3M closed at $89.93 yesterday.

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