3M "equal-weight," target price reduced - update

23.10.07 - Lehman Brothers

NEW YORK, October 23 (newratings.com) - Analyst Shannon O'Callaghan of Lehman Brothers reiterates her "equal weight" rating on 3M Company (MMM), while reducing her estimates for the company. The target price has been reduced to $90.

In a research note published yesterday, the analyst mentions that the company has reported its 3Q07 EPS marginally short of the estimate and the consensus, despite a $0.06 benefit from a lower-than-expected tax rate. 3M?s organic growth slowed down to 4.2% during the three-month period and the company lost market share in the TV and monitor segments, the analyst adds. The EPS estimates for 2007 and 2008 have been reduced to $4.97 and $5.45, respectively, in view of the continued pressure on the company?s margins.