Salomon Smith Barney upgraded 3M (MMM ) to outperform from neutral.
Analyst Jonathan Rosenzweig says 3M will exceed his and the consensus Q1 estimate of $1.11 on the heels of its cost-cutting initiatives. He says he believes 3M is well positioned for significant leverage as the econom gradually improves, and that bias will be to continue outperforming the bottom line. He raised his $4.85 2002 EPS estimate to $4.95 and keeps his $5.60 2003 estimate. He also raised his $115 target to $130. He notes his decision to go with outperform instead of buy reflects several factors, most notable of which is the stock's already lofty valuation.