Barclays Maintains an 'Equalweight' on 3M (MMM); Adjusting FY Outlook

Barclays maintains an 'Equalweight' on 3M (NYSE: MMM) price target of $94.00.

Barclays analyst says, "Looking forward new pension forecast of $0.10 headwind for 2012 is less than our prior $0.20 + forecast. The company is taking costs out and has a higher discretionary spend component than most other names we cover. In the last downcycle, it outperformed on the margin line as a result. We are modeling flat margins in 2012 with negative volume leverage and export-related negative margin impacts from FX. Management believes cost reduction opportunities could drive ~100bps of margin improvement, providing some offset to lower volumes and potential upside to our estimates. Our 2012E EPS remains $6.25 with slower growth outlook in tech offsetting lower pension headwinds." (Barclays lowers FY11 EPS estimate from $6.00 to $5.92)

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

Shares of 3M closed at $77.04 yesterday.

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