Nomura Securities Maintains a 'Reduce' on 3M (MMM); Acquisition of Avery OCP
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Price: $182.65 --0%
Rating Summary:
15 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 9
Rating Summary:
15 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 9
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Nomura Securities maintains a 'Reduce' on 3M (NYSE: MMM) price target of $80.00.
Nomura analyst, Shannon O’Callaghan, said, "3M has been making an organic push into the US label market over the last several years, and we think Avery Dennison’s Office & Consumer business gives them scale, while offering a cost synergy opportunity. This acquisition does not fit the recent mold of higher multiple/higher growth acquisitions, but we actually prefer it as the economics look achievable and are based on cost synergies in a space 3M knows well. Given the expected 2H12 close, we have not included the deal in our estimates but do see potential for $0.10+ of EPS accretion in 2013. Our $80 PT is based on ~13x our 2012 EPS estimate."
For an analyst ratings summary and ratings history on 3M click here. For more ratings news on 3M click here.
Shares of 3M closed at $83.49 yesterday.
Nomura analyst, Shannon O’Callaghan, said, "3M has been making an organic push into the US label market over the last several years, and we think Avery Dennison’s Office & Consumer business gives them scale, while offering a cost synergy opportunity. This acquisition does not fit the recent mold of higher multiple/higher growth acquisitions, but we actually prefer it as the economics look achievable and are based on cost synergies in a space 3M knows well. Given the expected 2H12 close, we have not included the deal in our estimates but do see potential for $0.10+ of EPS accretion in 2013. Our $80 PT is based on ~13x our 2012 EPS estimate."
For an analyst ratings summary and ratings history on 3M click here. For more ratings news on 3M click here.
Shares of 3M closed at $83.49 yesterday.
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