3M Co Upgraded to “Buy” at Nomura (MMM)

Nomura Securities upgraded 3M Co (MMM) to “Buy” from “Neutral” before the opening bell on Wednesday, and raised the company’s price target.

Nomura boosted 3M’s price target to $150 from $128, suggesting an 18% upside to the stock’s current share price. Nomura had the following justification for its upgrade and PT raise: “Organic growth is accelerating, capital allocation is turning positive, and margins may even have room to rise a bit, all suggesting to us that EPS growth could surprise to the upside versus current consensus estimates for 2014 and 2015,” analyst Shannon O’Callaghan states. “We expect all of that to benefit 3M's P/E, driving a potentially expanded and sustained higher multiple for 3M under the current Thulin/Meline management team.”

Looking ahead, Nomura sees 3M’s FY2013 EPS coming in at $6.75 and FY2014 EPS coming in at $7.50.

3M shares were down a fraction in pre-market trading. YTD, the company’s stock is up 34.57%.