Analysts lowered the price target for 3M Co (NYSE:MMM) after the company provided FY22 guidance.
- Wells Fargo analyst Joseph O'Dea lowered the price target to $173 (an upside of 10% Y/Y) from $184 and maintained an Equal Weight rating on the shares.
- The 2022 outlook for organic growth of 2%-5% and EPS of $10.15-$10.65 was light of what the analyst expected.
- The primary shortfall is related to headwinds from disposable respirators, which O'Dea expected to be a drag, just not as large as what's guided.
- The analyst notes as mask demand comes off the boil, the management foresees a two-point top-line drag in 2022 and pressure on the margins.
- Citigroup analyst Andrew Kaplowitz lowered the price target to $175 (an upside of 11%) from $190 and maintained a Neutral rating on the shares.
- RBC Capital analyst Deane Dray reduced the price target to $147 (a downside of 6.7%) from $155 and kept an Underperform rating on the shares.
- Credit Suisse analyst John Walsh lowered the price target to $182 (an upside of 15.6%) from $195 and maintained a Neutral rating on the shares.
- Deutsche Bank analyst Nicole Deblase reduced the price target to $182 (an upside of 15.6%) from $189 and kept a Hold rating on the shares.
- Barclays analyst Julian Mitchell decreased the price target to $170 (an upside of 8%) from $178 and maintained an Underweight rating on the shares.
- Mizuho analyst Brett Linzey lowered the price target to $170 (an upside of 8%) from $180 and maintained a Neutral rating on the shares.
- Recently, 3M introduced its FY22 guidance for total sales growth of 1%-4% and organic sales growth of 2%-5%.
- It expects EPS of $10.15-$10.65 (consensus $11.07) and operating cash flow of $7.3 billion - $7.9 billion.
- The company's outlook includes an anticipated decline in COVID-19-related disposable respirator demand in 2022, resulting in a headwind to organic growth of 2% and EPS of $0.45.
- 3M also revealed an investment of $165 million to improve water quality and reduce water use at its manufacturing facility in Cottage Grove, Minnesota.
- Price Action: MMM shares are trading lower by 0.27% at $157.59 on the last check Tuesday.
