Citi Reiterates Hold Rating On 3M

In a report published by Citi, 3M's (NYSE: MMM) Hold rating is reiterated.

Citi said that even though 3M recently held its year-end analyst meeting in NYC in early Dec, there are a handful of debate items that should hold investor interest at the company's upcoming March 17 investor meeting in St. Paul, MN. “Heading this list should be the management succession plan, which unexpectedly hit the newswires shortly after the Dec meeting. We expect the company to showcase at least three internal “short-list” leaders. The next shoe to drop could be the naming of one of these managers to 3M President (and heir apparent) within the next few months. We also expect updates on the 7%-8% longterm organic revenue growth (vs 4% historically), "Defend the Pyramid" strategy, emerging markets opportunities, and M&A. Our Hold rating on MMM reflects our thesis that we have already seen the most upside from the company's early-cycle fueled run this cycle, reducing prospects for stock outperformance at this point in the recovery. We maintain our estimates and $98 target, implying 10% upside.”

3M closed yesterday at $90.68.