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Analysts Continue to Cut 3M’s Target Price

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Analysts’ consensus for 3M

Currently, 14 analysts are actively tracking 3M (MMM) stock. Among them, 29% have “buy” recommendations, 50% are recommending a “hold,” and 21% are recommending a “sell.”

Analysts’ consensus target price for 3M is $213, which implies a return potential of 8.8% over the closing price on June 25. In the past three months, analysts have cut their consensus target price for 3M from $244.50 to $213, indicating their hawkish view on the stock.

A continued weakness in the market and a downward revision of 3M’s EPS for fiscal 2018 triggered the target revision. 3M now expects its 2018 EPS to be $10.20–$10.50 compared to the earlier guidance of $10.20–$10.70. As a result, many analysts have cut their target prices for 3M, and a majority of the analysts have recommended a “hold.”

Individual brokerage firms’ views

  • Jefferies Financial (JEF) has cut 3M’s rating to a “hold” and has recommended a target price of $220, implying a return potential of 12.4% over the closing price of $195.70 on June 25.
  • UBS (UBS) has rated 3M a “neutral” with a target price of $215, which implies a return potential of 9.9% over the closing price on June 25.
  • JPMorgan Chase (JPM) has rated 3M “underweight” with a target price of $221, which implies a return potential of 12.9% over the closing price on June 25.

Investors can hold 3M indirectly by investing in the iShares U.S. Industrials ETF (IYJ), which has 3.4% of its portfolio in 3M as of June 25.

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