UPDATE: Bank of America Reiterates Buy Rating, Raises PT on 3M Company on More Proactive Capital Allocation

In a report published Wednesday, Bank of America analyst Andrew Obin reiterated a Buy rating on

, and raised the price target from $141.00 to $150.00. In the report, Bank of America noted, “3M updated its capital allocation policy and hosted an analyst day in NY focusing on its growth strategy. The large dividend increase and higher buyback herald a more proactive capital allocation policy by the company that was welcomed by investors. 3M signaled a willingness to do larger deals (>$2bn), albeit the overall multi-year M&A framework ($5-10bn total spend) is largely unchanged. The initial EPS outlook of up 9-13% was slightly below our high on the street estimate but better than the consensus, and much better than what the bears were expecting. We note that 3M's organic top line outlook of 3-6% is the best among the multi-industrials so far. We reiterate our Buy rating and raise our PO to $150.” 3M Company closed on Tuesday at $131.39.