Nomura Securities Maintains a 'Reduce' on 3M (MMM); 3Q Organic Rev Lowest in Sector - 2012 Estimates Too High

Nomura Securities maintains a 'Reduce' on 3M (NYSE: MMM) price target of $79.00.

Nomura analyst, Shannon O'Callaghan, said, "3M’s story is all about accelerating organic growth, but organic growth of 2.8% continued to decelerate and was the lowest in our sector (sector average 7.8% so far in 3Q). Segment operating margins missed by 130 bps, with D&G below 20% at 19.1%. The 4Q guide implies around zero volume growth in 4Q, and they now expect $0.10 of pension headwind in 2012, which we think means 2012 estimates are too high. They are calling for at least one 1 point of margin improvement in 2012. Our existing 2012 EPS estimate is $6.10 or $0.51 below consensus of $6.61."

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

Shares of 3M closed at $82.18 yesterday.

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