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 $1

BofA Upgrades 3M to Buy, Shares Gain 2%


blog post cover photo

Image credit: FMP

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.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep