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Word on the Street: Analysts’ Latest Recommendations on 3M

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Analysts’ recommendations for 3M

On July 3, 2017, 17 different brokerage companies were actively tracking 3M Company (MMM) stock. Among them, 41% of analysts had recommended “buys,” 41% had recommended “holds,” and 18% had recommended “sells” on the stock.

As of July 3, 2017, analysts’ consensus estimate for MMM’s 12-month target price is $198.46. However, its stock was trading 5.7% above this target.

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Many analysts have recommended “buys” or “holds”

MMM posted better-than-expected 1Q17 earnings results and upgraded its 2017 GAAP (generally accepted accounting principles) EPS (earnings per share) to $8.70–$8.95 from its earlier guidance of $8.40–$8.80. Further, its continued consolidation of its portfolio and its acquisition of Scott Safety from Johnson Controls (JCI) is expected to have a positive impact on its revenue and net income. As a result, many analysts have recommended “buys” or “holds” on the stock.

Recommendations and target prices by individual brokerages

  • Citigroup (C) has recommended a target price of $230 for 3M, implying a 12-month potential return of 9.6% over its closing price of $209.83 on July 3, 2017.
  • Jeffries has rated 3M as a “buy” with a target price of $234, implying a 12-month potential return of 11.5% over its closing price on July 3.
  • Barclays (BCS) has announced a target price of $204 for 3M. However, the stock was already trading 2.9% above this recommended price on July 3, 2017.

Investors can indirectly hold MMM by investing in the Vanguard Industrials ETF (VIS), which has invested 4.5% of its portfolio in MMM. The top holdings of the ETF include General Electric (GE) with a weight of 8.7% as of July 3, 2017.

In the next article, we’ll look into MMM’s latest valuations.

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