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Expect 11% Upside From This Dow Component: Analyst
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CNBC.com Writer
3M has soared almost 80 percent since the March market low, and recently hit its 52-week high. Where's the stock headed? Deane Dray, senior diversified industrials analyst at FBR Capital Markets, shared his views on the company.
“We think 3M is still uniquely positioned in this market as a defensive, early cycle,” Dray told CNBC. “It’s trading even with the multi-industry group. We see at least an 11 percent upside from here by the way they’re positioned.”
Dray has an "outperform" rating on 3M [MMM
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] and said the company has a good revenue mix of early cycle, automotive and defensive exposures.
“A third of the business is considered early cycle, 15 percent of the business is consumer and beyond that, they’ve got 12 percent in automotive,” he said. “If you roll that up, those are the kinds of businesses that are most levered to early stages of an economic recovery.”
3M also has significant international exposure that will further benefit the company's revenue.
“They’re gaining greater share in China and emerging markets,” he said. “So with the weaker dollar, they have the ability to prosper there.”
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Disclosure:
Dray does not own shares of 3M.
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3M Competes With:
Avery Dennison [AVY
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DuPont [DD
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Johnson & Johnson [JNJ
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Data is a real-time snapshot *Data is delayed at least 15 minutes
