3M "equal weight," target price reduced

31.01.08 - Lehman Brothers

NEW YORK, January 31 (newratings.com) - Analyst Shannon O'Callaghan of Lehman Brothers maintains his "equal weight" rating on 3M Company (MMM), while raising his estimates for the company. The target price has been reduced from $90 to $82.

In a research note published yesterday, the analyst mentions that the company has posted its 4Q EPS ahead of the estimates and the consensus due to a lower-than-expected tax rate. 3M?s initiatives to improve its organic growth, without affecting its operating margins, are yet to bear fruit, the analyst says. Organic revenues from the company?s Display & Graphics unit declined by 1.3%, Lehman Brothers adds. The analyst expects 3M to continue to witness adverse pricing trends in Display & Graphics in 1H08. The EPS estimate for 2007 has been raised from $4.97 to $4.98.