3M "neutral," target price reduced

22.10.07 - Credit Suisse

NEW YORK, October 22 (newratings.com) - Analysts at Credit Suisse maintain their "neutral" rating on 3M (MMM), while reducing their estimates for the company. The target price has been reduced from $98 to $96.

In a research note published this morning, the analysts mention that the company?s growth revitalization strategy is progressing well. 3M is likely to achieve its strongest organic revenue growth in the decade in 2007, despite the economic weakness in the US, the analysts say. Margin contraction at 3M's Optical unit is expected to be higher than previously expected and is unlikely to be offset by margin improvement at the company?s other units, Credit Suisse adds. The EPS estimates for 4Q07 and 2008 have been reduced from $1.19 to $1.17 and from $5.39 to $5.20, respectively.