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3M's stock leads Dow losers after J.P. Morgan's Stephen Tusa gets even more bearish

Tomi Kilgore

Shares of 3M Co. fell 0.7% in afternoon trade, after analyst Stephen Tusa at J.P. Morgan got even more bearish on the diversified industrial and consumer products conglomerate, citing continued evidence of "structurally lower profit growth." The stock was the biggest decliner among the Dow Jones Industrial Average's components. Tusa, known for his long-time, and eventually correct, bearish call on General Electric Co. , reiterated the underweight rating he's had on 3M since Sept. 20, 2017, while cutting his price target to $154, which is 26% below current levels, from $158. His target is by far the lowest of the 20 analysts surveyed by FactSet. Tusa said he believes 3M, which consumer brands include Post-it Notes and Scotch tape, is facing "an increasingly apparent trade-off between top-line growth and margins." The stock has slipped 5.7% over the past 12 months, while the Dow has gained 7.3%.