NEW YORK (TheStreet) -- Shares of 3M Co. (MMM) are slightly lower at $166.65 in pre-market trading after Langenberg & Co. downgraded the company to "hold" from "buy" while raising its price target to $170 from $160.
"3M has upped its game over the past 2 to 3 years and remains well on track to achieve its 2013 to 2017 objectives of 4% to 6% core revenue growth, EPS 9% to 11% per annum, ROIC 20% plus and 100% FCF conversation," analysts said.
In terms of guidance, 2015 was initiated at $8 to $8.30 on 3% to 6% core sales growth and 2% to 3% FX headwind. Langenberg & Co. estimates 2014 upward to $1.79 from $1.77 and 2015 at $8.20.
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"We love the company, but paying 20X forward EPS for a specialty chemical company is tough for us. An upside case can be made given the strong intellectual property and potential benefits of boosting R&D spending to 6% of sales from 5.6% over the coming years," analysts noted.
Overall, analysts said 3M was a "great story, fully reflected in [its] stock price."
Separately, TheStreet Ratings team rates 3M CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate 3M CO (MMM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."