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Analysts’ Views and Recommendations on 3M ahead of 4Q17 Earnings

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Jan. 23 2018, Updated 10:33 a.m. ET

Analysts’ consensus on 3M

The number of analysts tracking 3M in the past three months has been reduced to 14. Among them, 29% of the analysts have recommended 3M stock as a “buy,” 50% of the analysts recommended the stock as a “hold,” and 21% of the analysts recommended the stock as a “sell.”

The analysts’ consensus target price for 3M us $232.33, which is ~6.8% above the recommended target price. In the past three months, analysts’ consensus on 3M rose from $211.20 to the current target price. However, some analysts believe that 3M’s valuations are stretched and that it is trading at a higher price.

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Half of the analysts recommend a “hold”

At present, many analysts see 3M stock as expensive. However, positive developments such as the completion of the acquisition of Scott Safety from Johnson Control, continued stock repurchases, and continuing improvement in operating income have influenced some analysts to recommend a “hold” or a “buy” for 3M.

Recommendations and target prices by individual brokers

  • J.P. Morgan (JPM) has revised its target price for 3M to $221.00 compared with its earlier recommendation of $208.00. However, 3M stock was already trading 12.3% above the recommended target price on January 19, 2018
  • Deutsche Bank (DB) rated 3M as a “hold” and recommends a target price of $240.00. However, the stock is traded 3.4% above the recommended target price on January 19, 2018.
  • Royal Bank of Canada (RY) recommended 3M with a target price of $215.00. The stock is trading well above the recommended target price.

Investors can indirectly hold 3M (MMM) by investing in the Vanguard Industrials ETF (VIS), which had 4.6% of its holdings in 3M on January 19, 2018.

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