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Exploring Analysts’ Latest Price Recommendations for 3M

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May. 25 2017, Updated 1:05 p.m. ET

Analysts’ recommendations for 3M stock

On May 25, 2017, 18 brokerage companies were actively tracking 3M Company (MMM) stock. About 44.0% of those analysts recommended “buys” on the stock, and 39.0% recommended “holds.” The remaining 17.0% recommended “sells.”

Analysts’ consensus estimate indicates a 12-month target price of $195.14 for 3M stock. However, the stock was already trading 1.2% above its recommended price on May 24, 2017.

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Why most analysts recommend “holds” or “buys” on 3M

3M posted better-than-expected 1Q17 earnings results on solid organic revenue growth. The company revised its 2017 GAAP (generally accepted accounting principles) EPS (earnings per share) guidance upward from $8.45–$8.80 to $8.70–$9.05. 

Positive business developments such as acquisitions and new product launches may also have caused analysts to become positive on the stock.

Recommendations and target prices

Let’s take a look at some of the recommended target prices for 3M from well-known brokerage companies:

  • Stifel announced a target price of $202 for 3M, implying a 12-month potential return of 2.3% over its closing price of $197.49 on May 24, 2017.
  • Barclays (BCS) announced a target price of $204 for 3M, implying a 12-month potential return of 3.3% over its closing price on May 24.
  • Jeffries rated 3M as a “buy” with a target price of $219, implying a 12-month potential return of 10.9% over its closing price on May 24.
  • Credit Suisse (CS) announced a target price of $203 for 3M, implying a 12-month potential return of 2.8% over its closing price on May 24.

You can indirectly hold 3M by investing in ETFs such as the ProShares Ultra Dow30 ETF (DDM), which holds 4.7% of its portfolio in 3M. DDM’s top holdings include Goldman Sachs (GS), which had a weight of 5.2% in the fund as of May 24, 2017.

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