Jefferies Raises Price Target on 3M (MMM)

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 DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.