3M moving too slowly to address mounting problems, analyst says

|About: 3M Company (MMM)|By:, SA News Editor

3M (MMM -0.8%) continues to slide following its sharp Q1 earnings miss and guidance cut, with Gordon Haskett analyst John Inch downgrading shares to Hold from Buy and slashing his price target to $185 from $222, saying his concerns extend beyond Q1 results.

Self-help benefits that have been years in the making "have largely evaporated," while the "outsized decremental operating profit realized in [Q1] begs the question whether years of 3M footprint rationalization have actually made things worse," Inch writes.

The Haskett analyst wonders if 3M's response of cutting ~2% of the company workforce may be an insufficient response.

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