Nomura Securities Maintains a 'Reduce' on 3M (MMM); Acquisition of Avery OCP

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.

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