Argus analyst John Eade lowered the firm’s price target on 3M (MMM) to $155 from $165 and keeps a Buy rating on the shares. The firm notes the company has been mired in litigation pertaining to faulty products and the cleanup of PFAS in drinking water amid chemical seepage from prior 3M manufacturing. 3M’s margins have also been suffering from inefficiencies in its factories, a weak supply chain, and R&D challenges. In response, 3M brought on a new CEO to institute a turnaround, spun off one of its crown jewels, and cut the dividend to conserve cash, says Argus. The firm believes 3M is making progress with aggressive steps to improve revenue and earnings. In all, margins are widening, and cash flow remains strong, it adds.
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