3M Co.’s stock dropped 1.2% in morning trade Monday, enough to make it the biggest decliners among Dow Jones Industrial Average components, after Goldman Sachs turned bearish on the industrial conglomerate, citing concerns over weakness in its energy and electronics businesses, and the impact of its large exposure to consumer markets. Analyst Joe Ritchie downgraded 3M to a rare sell rating from neutral, and slashed his stock price target to $159–7% below current levels–from $167. Only 14% of companies covered by Goldman are rated sell. Many industrial stocks have rallied since Donald Trump’s election win, on hopes of increased infrastructure spending and tax breaks. Ritchie said 3M should underperform its industrial peers under those scenarios, given that more than half of its revenue comes from consumer markets, and the fact that 3M has already been repatriating a lot of its cash. 3M’s consumer product brands include Scotch, Post-it and ACE. The stock has now lost a little less than 0.1% since the election, while the Dow has gained 3.1%. Year to date, 3M shares have hiked up 13% and the Dow has advanced 6.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News