3M (NYSE:MMM) shares rose around 2% intra-day today after BofA Securities analysts upgraded the company to Buy from Neutral, increasing their price target to $120 from $105.

The upgrade is based on their belief that the new CEO will successfully refocus the company on growth and operational efficiency. The analysts noted that the timing of the management change is advantageous, as 3M has been dealing with significant litigation issues related to PFAS and Combat Arms, exiting PFAS manufacturing, and spinning off its Healthcare business. Concerns about a potential dividend cut have also been resolved.

With major litigation settlements largely behind the company and reduced uncertainty about remaining lawsuits, the analysts expect investors to shift their attention to 3M's improving operations, potential cyclical leverage, and attractive valuation, even when accounting for future legal liabilities. The new price target of $120.00 is based on a 10x 2025 EV/EBITDA, which is a discount compared to the 16x average for its peer group.