You may remember Tusa from his scathing downgrades of General Electric (GE) - Get General Electric Company (GE) Report . In the case of 3M, he acknowledged that he's been wrong on the rising stock thus far, bumping his price target to $207 from $201. However, he maintained his underweight rating on the stock. His target implies about 14% downside from current levels.
Tusa is "one my absolute favorite analysts," TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment, but his analysis is a "bridge too far."
The stock is expensive on every metric, Tusa reasoned, to the tune of a 15% to 25% premium. Free-cash yield isn't impressive, either. The growth profile and current valuation just don't add up.
The analyst is basically saying that all of the drivers that have worked for 3M -- China, electronics and autos -- will not continue at the same pace going forward, Cramer said. However, he disagreed with Tusa's overall take that 3M is an underweight.
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3M is an innovator and many of the new products that it creates turns into earnings very quickly for the company. CEO Inge Thulin is also very, very good, he added.
3M is a fabulous company and it always has been, said Cramer, who also manages the Action Alerts PLUS charitable trust portfolio. And Tusa is a great analyst, but when it comes to this report, "I don't buy it," Cramer concluded.
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At the time of publication, Cramer's Action Alerts PLUS had a position in 3M.