3M: Barclays Raises to Outperform, $105 Target

Shares of 3M (MMM) are up 8 cents at $88.05 after the company easily beat Q1 results yesterday morning and raised its year forecast.

Barclays Capital analyst Robert Cornell today raised his rating on the shares to “Overweight” from “Equal Weight” and raised his target price to $105 from $90.

Cornell sees 3M long-term “core” sales growth rising from 4% historically to 7% to 8% given that management these days is spending more on R&D, changing incentive-based compensation, and developing more local laboratories in various parts of the world.

Cornell raised his 2010 EPS estimate to $5.85 from $5.10, above the company’s own forecast of as much as $5.60. His 2011 estimate goes to $6.50 from $5.50, and his 2012 estimate goes to $7 from $6.