3M initiated with an Underweight at Morgan Stanley

Morgan Stanley analyst Christopher Snyder initiated coverage of 3M with an Underweight rating and $125 price target. 3M shares have re-rated about 25% over the last three months while consumer spending has continued to soften, which the firm sees setting up downside to consensus’ 3.5% organic growth forecast in 2025 and leaving a negative risk-reward, the analyst tells investors. New CEO Bill Brown has driven a “v-shaped recovery in MMM sentiment,” but for 3M to re-rate beyond current levels, there needs to be a path to GDP+ growth, which is a metric that 3M has lagged by about 4% over the last decade and one that will be difficult to achieve over the next twelve months, the analyst added.