3M's Scotch brand tape on display for sale at a supermarket in Princeton, Illinois.
Daniel Acker | Bloomberg | Getty Images
Goldman Sachs lowered its rating for 3M to sell from neutral, saying the company's earnings results will come in below expectations in the coming year.
"While MMM remains a solid franchise with top quartile margins/returns through a cycle, we see downside risk to Street EPS ... owing to growth challenges in electronics as smartphone sales taper and the shift to OLED continues," analyst Joe Ritchie wrote in a note to clients Monday.
"We also think margins will be pressured from rising raw material costs. Lastly, we believe the multiple (~20x 2017E EPS) could derate if investors rotate to more cyclically exposed industrials."
