UPDATE: Bank of America Merrill Lynch Downgrades 3M to Underperform

Bank of America Merrill Lynch is out with its report today on 3M Company (NYSE: MMM), downgrading MMM from Neutral to Underperform.

In a note to clients, Bank of America Merrill Lynch writes, "We are downgrading MMM to Underperform from Neutral. No change to our estimates or PO at this time. 3M's shares have outperformed recently given the backdrop of macro-economic concerns and 3M's perceived defensiveness. However, the stock now trades at a significant premium to most of the sectors in which 3M competes. Meanwhile, issues prevail toward margins, high consumer exposure and lack of visibility vs. more capital spending-driven industrials."

At the time of posting, shares of MMM were trading pre-market at $94.80, down 1.45% from Wednesday's close.