Citigroup Keeps Hold On 3M

Analyst Jeffrey Sprague says he's concerned tough comparable sale sand earnings per share deceleration will hold the the technology company's stock back

Citigroup keeps hold on 3M (MMM ).

Analyst Jeffrey Sprague says stronger-than-expected margins drove 2 cents earnings per share upside as 4.6% revenue growth was below the consensus estimate of 6.5% growth and his estimate of 8.6% growth.

He notes 5 of 7 segments had weaker-than-expected local currency revenue growth. Most concerning was the negative local currency sales growth in Consumer and Electro and Communications, and only 0.6% growth in Display and Graphics.

While the company expects local currency sales growth to accelerate to 4% to 7% in the second quarter, and 5% to 8% for the year, Sprague says this looks challenging. He is concerned tough comparable sales and earnings per share deceleration will hold the stock back.

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