3M's (NYSE:MMM) Organic Growth Impressive

Organic growth in the latest quarter was a solid 8.6 percent, as five out of the six segments 3M (NYSE:MMM) operates in showed improved sales trends.

FBR says, "Even as there were several puts and takes in 3M’s modest 4Q operating EPS beat, a key highlight, in our view, was the solid 8.6% organic growth performance, where despite tougher comps and weakness in Optical film, better sales trends in five of 3M’s six segments helped drive revenues 2% ahead of our expectations. Emerging markets and new product introductions remain key drivers, with Asia Pacific/Latin America sales up 22%/12% and new product vitality index (NPVI) at 31%.

"We have increased our 2011 EPS estimate to $6.15 and see potential upside from a bottoming in Optical margins in 1H2011, continued robust growth in 3M’s renewables portfolio ($300 million revs, up >60% in 2010), and moderating SG&A and R&D expense."

FBR Capital maintains an "Outperform" rating on 3M (MMM), which was trading at $88.96, up $0.46, or 0.52 percent, as of 12:45 PM EST. FBR has a price target on 3M of $99.