Jefferies Raises Price Target on 3M (MMM)
On Friday, Jefferies reported that it has raised its price target on technology company 3M Co (MMM).
The firm has maintained a “Buy” raring on MMM, and has increased the company’s price target from $128 to $140. This new price target suggests a 15% upside from the stock’s current price of $118.68.
Analyst Laurence Alexander noted, “given 3M’s 5.7% FCF yield, robust balance sheet, and short-cycle business model, we expect a 15%-20% premium to the S&P 500 to be sustainable.”
“We are keeping 2013E EPS at $6.75, but trimming 2014E $0.05 to $7.55 and 2015E $0.05 to $8.50 to reflect ~100bps slower volume growth forecasts,” Alexander added.
Looking forward, the firm has cut third quarter estimates from $1.84 to $1.83 per share. For FY2013, EPS estimates remain at $6.75. FY2014 estimates have been lowered from $7.60 to $7.55 per share.
3M shares were mostly flat during pre-market trading Friday. The stock is up 28% YTD.
The Bottom Line
Shares of 3M Co (MMM) have a 2.14% yield based on Thursday’s closing price of $118.68.
3M Co (MMM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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