3M "neutral," target price reduced

09.01.08 - Credit Suisse

NEW YORK, January 9 (newratings.com) - Analyst J McNulty of Credit Suisse maintains his "neutral" rating on 3M Co (MMM). The 12-month target price has been reduced from $96 to $94.

In a research note published yesterday, the analyst mentions that the downward revision in the target price is on account of a shift in the base year. 3M has made 19-20 acquisitions in 2007, which are likely to boost the company?s growth going forward, the analyst says. The costs of integrating the acquisitions and ensuring the ramp up of these facilities are, however, likely to impact the company?s profitabity in the near term, Credit Suisse adds.