Analyst Andrew Obin from Bank of America Securities reiterated a Buy rating on 3M (MMM – Research Report) and increased the price target to $179.00 from $175.00.
Andrew Obin has given his Buy rating due to a combination of factors related to 3M’s legal liabilities and financial outlook. The settlements of Combat Arms and Public Water Suppliers in 2023 have addressed a significant portion of 3M’s legal liabilities, estimated at around 40%. While there are remaining legal issues concerning natural resource damage, personal injury, and Superfund sites, these are expected to be manageable or delayed, with personal injury cases likely being pushed to 2026 and Superfund actions to 2029.
Additionally, Obin notes that international lawsuits are not expected to pose substantial financial risks, and ongoing cases in New Jersey and Vermont are more of a headline concern rather than a material financial threat. Furthermore, 3M’s CEO has indicated potential insurance recoveries by 2027, which could offset some liabilities, although these are not included in current forecasts. The analyst has raised the price objective to $179, reflecting a lower net present value of liabilities and a focus on the company’s execution, gross margin expansion, and organic revenue growth.
Obin covers the Industrials sector, focusing on stocks such as 3M, Ametek, and Eaton. According to TipRanks, Obin has an average return of 11.5% and a 59.16% success rate on recommended stocks.
In another report released on February 27, UBS also reiterated a Buy rating on the stock with a $184.00 price target.
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