Barclays Maintains an 'Overweight' on 3M (MMM); Weak 2Q Presents New Entry Point to Longer-Term Growth Story

Barclays maintains an 'Overweight' on 3M (NYSE: MMM) price target of $112.00.

Barclays analyst says, "2Q results were an operational miss on weaker margins, but we think there is a line of sight to yoy margin improvement in 2012 helping to keep our investment thesis intact: 2Q operating margin was down 210bps y/y due to lower than expected organic growth, negative price/cost, impact of fx, Japan and increased pension and OPEB expense. However, we would expect to see all of the current margin headwinds turn into margin tailwinds or be neutral in 2012 such that y/y operating margin could be up regardless of volume leverage." (Barclays lowers FY11 EPS estimate from $6.40 to $6.25, maintains $7.40 for FY12)

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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