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.