RBC Capital analyst Deane Dray raised the price target for the post-it maker 3M Company (NYSE:MMM) from $120 to $130, while keeping an Underperform rating.
• MMM stock is challenging resistance. See the full story here.
Recent Earnings Results
On Tuesday, the company posted for the third quarter adjusted sales of $6.3 billion, which came slightly above the consensus estimate of $6.255 billion.
Adjusted earnings per share rose 10% Y/Y to $2.19, topping the Street estimate of $2.07.
3M raised its 2025 adjusted EPS outlook to $7.95-$8.05 (prior $7.75-$8) versus the consensus of $7.92.
The company now expects 2025 adjusted sales organic growth of >2% (versus ~2% prior).
Analyst View
The analyst notes the company reported modest, broad-based operational results.
Highlights included stronger organic growth and successful new product launches, adds the analyst.
Dray writes the initial outlook for 2026/2027 was encouraging, projecting a macro environment similar to 2025, with 30%-40% core incrementals and productivity offsetting various costs.
However, the analyst maintains that the multi-billion-dollar PFAS litigation, specifically the five categories of unaddressed/unreserved claims, remains a significantly underappreciated risk.
The next key event is determining the final number of cancer claimants for the personal injury class actions, as estimates vary widely from the initial base of 14,000 claims, adds the analyst.
Apart from this, Wells Fargo analyst Joe O'Dea maintained an Overweight rating and raised the price forecast from $176 to $183.
Investors can gain exposure to the stock via ProShares Smart Materials ETF (NYSE:TINT) and PGIM ETF Trust PGIM Jennison Focused Value ETF (NYSE:PJFV).
MMM Price Action: 3M shares are down 0.23% at $166.26 at publication on Wednesday.
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