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The Street’s Love/ Hate Relationship With 3M

Did you notice that JPMorgan cut 3M two days after Goldman called it a ‘Conviction Buy’?

It seems the Street is having a love hate relationship with the stock.

On Thursday JPMorgan downgraded the conglomerate to ‘Neutral’ from ‘Overweight’ and lowered its price target to $75 from $79 citing the stocks outperformance last year.

"While we believe recent investment will pay off in higher growth...we think getting there will be a 'show me' story (and)..we see risk that management is held accountable for 7-8% growth every quarter, and the number could become an unhealthy obsession for the Street. We think it's a bit early for such bold talk."

Source: JPMorgan, Jan. 7, 2010

Meanwhile, just two days ago Goldman Sachs added 3M to its Conviction Buy list and issued a very bullish note.

"...a wholesale revitalization of the 3M R&D engine and portfolio that we believe is often overlooked by investors, given the absence of 'mega-products' such as Post-It notes and Optical film as in the 1980s and 1990s"

"New higher growth market/product opportunities" including renewable energy, digital signage, lithium ion batteries. “

Source: Goldman Sachs, Jan. 5, 2010

Who's right?

I’d side with Goldman, says Joe Terranova. I’m bullish 3M for their product line up.

The traders talked about this stock at length on Wednesday's Fast Money. Click here for more Fast Money insights on 3M as well as the entire sector.


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Trader disclosure: On January 7th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Kaminsky Is Short (QQQQ); Finerman's Firm Owns (GME), (MSFT), (PLCE), (WMT); Finerman's Firm Is Short (IJR), (SPY), (IWM), (MDY), (UNG), (USO); Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spread; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (TJX); Finerman's Firm Is Short 30-Year Treasury Options; Finerman's Firm Is Short (TBT); Finerman Owns (AAPL); Terranova Owns (BAC); Terranova Is Short February Crude Oil Futures; Terranova Is Short (CMA), (SHLD); Terranova Is Long Copper Backwardation, Is Long May 2010 Futures, Is Short July 2010 Futures; Seygem Asset Management Owns (EEM) Puts, Seymour Owns (EEM), (AAPL), (AA), (BAC), (CHL), (FXI), (INTC)

Add’ls Disclosures for JoeTerranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)

For Jon Najarian
Jon Najarian Owns (APOL) Time Spread

Pete Najarian Owned (XLF) Calls Today


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