What analysts are saying: 3M, ValueVision

  • Updated: August 23, 2014 - 2:00 PM

3M’s acquisition strategy changes credit outlook

The corporate credit rating agency Moody’s Investors Service issued a report last week on 3M’s long-term debt rating, moving the outlook from stable to negative, meaning the next step could be a downgrade to its long-term debt rating of Aa2.

Moody’s reason for the outlook change is due to higher amounts of debt 3M is expected to take on for a new acquisition strategy and its commitment to return more cash to shareholders. “Although we expect 3M’s already very strong operating performance will continue to improve, the negative outlook captures the potential [that] the company will steadily increase the proportion of debt in its capital structure.’’

New CEO pledges ValueVision will be nimble

Stronger-than-expected second-quarter results from ValueVision Media convinced local analysts at Lake Street Capital Markets and Feltl and Co. to maintain “buy” ratings on the Eden Prairie-based omnichannel retailer.

During the quarter the company appointed a new CEO, Mark Bozek, and five new directors after a costly proxy contest.

Bozek addressed analysts on a conference call Wednesday. Lake Street analyst Mark Argento gave his assessment of Bozek in a research note: “From our perspective, Bozek brings a breath of fresh air, clearly wanting to foster a more nimble organization. The words ‘scrappy and aggressive’ and ‘think nimble, be nimble’ were consistently mentioned during the Q&A.”

Patrick Kennedy

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