Andrew Obin, an analyst from Bank of America Securities, reiterated the Buy rating on 3M (MMM – Research Report). The associated price target remains the same with $175.00.
Andrew Obin has given his Buy rating due to a combination of factors that highlight 3M’s potential for growth and improvement. The company is expected to announce new revenue, gross margin, and operating margin targets that, while modest, align with industry peers and suggest a focus on long-term growth. Despite past challenges, including macroeconomic factors and litigation distractions, 3M is poised to set targets that are competitive within the multi-industrial sector.
Additionally, 3M is revamping its growth platform strategy, which had previously been hindered by external factors such as COVID-19. The company is also focusing on improving its gross margins, which have shown signs of recovery after years of decline. This improvement is crucial as it correlates with expanding valuation multiples. Furthermore, 3M’s strategic exit from PFAS manufacturing opens opportunities to optimize its manufacturing processes, potentially enhancing efficiency and profitability. These strategic initiatives, combined with a strong focus on core technologies and manufacturing optimization, underpin Obin’s positive outlook for 3M.