3M's Earnings Impress, Yet Analysts See Long Road Ahead With Cyclical Recovery And PFAS Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2024
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Source: Benzinga
Analyst Upgrades and Earnings Report: Following 3M Company's strong Q3 results, analysts have raised price targets, with BofA Securities increasing it to $160 while maintaining a Buy rating, and RBC Capital Markets raising theirs to $100 but keeping an Underperform rating. The company reported adjusted net sales of $6.068 billion and adjusted EPS of $1.98, exceeding expectations.
Concerns and Future Outlook: Analysts express caution regarding 3M's future growth due to macroeconomic uncertainties and ongoing PFAS liabilities that could pose significant risks. Despite the positive earnings outlook for FY24, concerns remain about the company's cyclical growth profile and operational weaknesses needing attention.
Analyst Views on MMM
Wall Street analysts forecast MMM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MMM is 152.00 USD with a low forecast of 100.00 USD and a high forecast of 184.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
6 Buy
3 Hold
2 Sell
Moderate Buy
Current: 160.630
Low
100.00
Averages
152.00
High
184.00
Current: 160.630
Low
100.00
Averages
152.00
High
184.00
About MMM
3M Company is a diversified technology company. The Company is a manufacturer and marketer of a variety of products and services. The Company’s segments include Safety and Industrial; Transportation and Electronics, and Consumer. Its Safety and Industrial segment includes industrial abrasives and finishing for metalworking applications; autobody repair solutions; industrial specialty products, such as personal hygiene products, masking, and packaging materials, and others. Its Transportation and Electronics segment includes advanced ceramic solutions; attachment/bonding, films, sound and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage. Its Consumer segment includes cleaning products for the home; consumer air quality products, and picture hanging accessories. Its brands include 3M Cubitron II abrasives, Scotch-Brite, Filtrete, Command, Scotchgard, Meguiar’s, Nexcare, Post-it and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
