3M Cut at JPMorgan on Slowing Auto, Electronic and China Markets
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
MMM US (3M Co)
People
Steve Tusa (JPMorgan Chase & Co)
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UUID: 7947283
(Bloomberg) -- 3M Company shares fell as much as 1.7%, the most intraday since July 25, after they were downgraded to underweight from neutral at JPMorgan. The company’s years-long multiple expansion does not coincide with a dimmer outlook for the auto, electronic and broader China markets, analyst Stephen Tusa writes in a note.
- Says ~30% of co.’s growth this year stemmed from auto, electronics and China, but anticipates slowing next year
- Notes that driving growth is becoming more costly
- Near high-end historical multiple negatively skews risk
- Triggers for potential (~6%) downside to PT include:
- Negative consensus revisions
- Persistent tepid U.S. price performance
- Acknowledges portfolio quality, but says bullet-proof earnings are a "stretch"
- PT $201 vs $185 (July 25, Bloomberg data)
- NOTE: MMM 6 buys, 9 holds, 2 sells, avg PT $207: Bloomberg data
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
MMM US (3M Co)
People
Steve Tusa (JPMorgan Chase & Co)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283