3M’s stock keeps falling as the most-bearish analyst gets even more bearish

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3M’s stock keeps falling as the most-bearish analyst gets even more bearish
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Shares of 3M Co. kept sinking Friday, toward the lowest close in years, after Wall Street’s most bearish analyst got even more bearish, citing the company’s...

Shares of 3M Co. kept sinking Friday, toward the lowest close in years, after Wall Street’s most bearish analyst got even more bearish, citing the company’s overly optimistic growth outlook at a time of very high inventory levels.

Tusa questioned the company’s financial guidance, which calls for acceleration in the second half of the year mostly in auto electronics and related to China, and says that he is “even more cautious” on the sector after visiting last week. That’s not to mention all the uncertainty regarding the contentious U.S.-China trade relationship, and the downward adjustment that will likely be needed when the acquisition of Acelity Inc. is included.

Add to that uncertainties surrounding environmental liabilities. In the first quarter, the litigation-related charges 3M recorded included a $313 million increase in respirator reserves to resolve coal-mine dust lawsuits and the establishment of $235 million in reserves to resolve matters related to the manufacture and disposal of waste containing perfluorinated compounds .

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