Analyst recommendations for 3M stock
As of April 24, 2017, 18 brokerage firms were actively tracking 3M (MMM) stock. About 44.0% of those analysts are recommending a “buy” for 3M stock, and 39.0% are recommending a “hold.” The remaining 17.0% have recommended a “sell.”
The analyst consensus indicates a 12-month target price of $194 for 3M stock. But with 3M beating analysts’ estimates, the stock closed 0.60% above analysts’ recommendations on April 25, 2017.
Why are so many analysts optimistic?
3M posted better-than-expected 1Q17 earnings on good organic revenue growth. The company also made an upward revision of its fiscal 2017 GAAP (generally accepted accounting principles) EPS (earnings per share) guidance to $8.70–$9.05, compared to its earlier guidance of $8.45–$8.80. Positive business developments such as acquisitions and new product launches could have also caused analysts to be positive about the stock.
Recommendations and target prices
Below are some of the recommended target prices for 3M from well known brokerage firms:
- On April 26, 2017, Stifel announced a target price for 3M of $202, which implies a 12-month return of 3.5% compared to its closing price of $195.13 on April 25, 2017.
- On April 26, 2017, Barclays (BCS) announced a target price for 3M of $204, which implies a 12-month potential return of 4.5% compared to its closing price of $195.13 on April 25, 2017.
- On March 20, 2017, Credit Suisse (CS) announced a target price for 3M of $203, which implies a 12-month potential return of 4.0% compared to its closing price of $195.13 on April 25, 2017.
You can indirectly hold 3M by investing in ETFs such as the ProShares Ultra Dow30 (DDM), which has 4.8% of its portfolio in 3M. DDM’s top holdings include Goldman Sachs (GS) with a weight of 5.7% as of April 25, 2017.