Nomura Securities Maintains a 'Reduce' on 3M (MMM); 4Q11 Review
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Price: $182.65 --0%
Rating Summary:
15 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Rating Summary:
15 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
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Nomura Securities maintains a 'Reduce' on 3M (NYSE: MMM) price target raised to $84.00.
Analyst, Shannon O'Callaghan, said, "4Q11 EPS of $1.35 beat our $1.29 estimate and $1.31 consensus, but segment profit was in line with our estimate, adjusting for $23M insurance gain. 4Q was OK and about in line with our segment profit estimate excluding an insurance gain. 2012 guidance reiterated and 1H will be under pressure. None of that is surprising, but confirms continued pressure on organic growth near-term. Bigger picture, 3M seems to be in a spot where its focus on cost management stands in contrast to its strategy of trying to accelerate organic growth, and the lack of clarity on CEO succession from the board has created murkiness on who will be driving strategy (though current CEO George Buckley and COO and potential successor Inge Thulin appear to be on the same page). These factors could keep the stock in check. We maintain EPS estimates of $6.20/$6.75 for 2012/13 and raise price target to $84 (P/E up half point to 13.5x on better industrial multiples)."
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 $87.58 yesterday.
Analyst, Shannon O'Callaghan, said, "4Q11 EPS of $1.35 beat our $1.29 estimate and $1.31 consensus, but segment profit was in line with our estimate, adjusting for $23M insurance gain. 4Q was OK and about in line with our segment profit estimate excluding an insurance gain. 2012 guidance reiterated and 1H will be under pressure. None of that is surprising, but confirms continued pressure on organic growth near-term. Bigger picture, 3M seems to be in a spot where its focus on cost management stands in contrast to its strategy of trying to accelerate organic growth, and the lack of clarity on CEO succession from the board has created murkiness on who will be driving strategy (though current CEO George Buckley and COO and potential successor Inge Thulin appear to be on the same page). These factors could keep the stock in check. We maintain EPS estimates of $6.20/$6.75 for 2012/13 and raise price target to $84 (P/E up half point to 13.5x on better industrial multiples)."
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 $87.58 yesterday.
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