Shares of 3M have been hit hard since the company's disappointing first-quarter earnings report.
J.P. Morgan analyst Stephen Tusa said in a note that 3M's "premium valuation is unjustified by undifferentiated fundamentals," with growth excluding mergers and acquisitions likely decelerating and benefits to margins fading. Tusa became well-known on Wall Street for his early warnings toinvestors, tracing back to 2016 when GE's stock traded at nearly three times its current value.
3M shares have fallen more than 22% from its 52-week high in April, putting it in a bear market. Tusa said 3M's second quarter is "set to be weak" with "no sign of recovery." Tusa also believes 3M's quarterly dividend, beloved by shareholders, is at risk of being lowered for the first time in nearly four decades.
"Another leg down in fundamentals would mean they are on watch for a cut, after 37 straight years of increase," Tusa said. Tusa pointed to 3M's growing list of liabilities as another risk to the company's earnings-per-share growth. The company is dealing with numerous lawsuits that range from
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
JP Morgan: The US-China tariff battle is just the start of a global trade reorderingAs the relationships between countries shift over the next few decades, expect trade to remain a hot button issue, according to one analyst.
Lire la suite »
JP Morgan says US farmers are facing a crisis from trade war, downgrades Deere's stockThe state of American agriculture is 'rapidly deteriorating' into crisis, J.P. Morgan said on Tuesday.
Lire la suite »
Barclays, Citigroup and JP Morgan among banks fined $1.2 billion for forex riggingBarclays, Citigroup, J.P. Morgan, MUFG and Royal Bank of Scotland have been fined a total of 1.07 billion euros ($1.2 billion) by EU antitrust regulators for rigging the spot foreign exchange market for 11 currencies.
Lire la suite »
EU fines five banks $1.2 billion for foreign exchange riggingBarclays, Citigroup, JP Morgan, MUFG and Royal Bank of Scotland were fined a com...
Lire la suite »
EU fines Barclays, Citi, JP Morgan, MUFG and RBS $1.2 billion for FX riggingBarclays, Citigroup, JP Morgan, MUFG and Royal Bank of Scotland were fined a com...
Lire la suite »
JP Morgan buys health-care payments firm InstaMed in biggest acquisition since financial crisisThe move by the biggest U.S. bank shows that it views the fast-changing world of payments as a battleground worthy of aggressive wagers.
Lire la suite »
Four reasons why the bears are wrong about a second-half slump: J.P. MorganNeed to Know: Earnings, jobs and all the reasons stock bears are wrong
Lire la suite »
GE is not 'telling the whole story' about its struggling power business, says JP Morgan's TusaGeneral Electric's power business is still struggling, but the company is sugar coating this in communications with investors, according to a top analyst at J.P. Morgan.
Lire la suite »
Foreign money has fled Chinese stocks by the billions this month. JP Morgan says it's just a 'blip'Since the beginning of May, foreign money has pulled out from the Shanghai and Shenzhen markets through Hong Kong's Stock Connect platform, reportedly amounting to $7.56 billion.
Lire la suite »
Haven, the new health venture led by Amazon, Berkshire Hathaway and JP Morgan, just lost its No. 2 execJack Stoddard, Haven's second hire and its COO, left for personal reasons and has yet to be replaced.
Lire la suite »