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3M: Analysts’ Views before Its Q4 Earnings

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Analysts’ consensus on 3M

Investors follow analysts’ views, recommendations, and target prices as a guide to the track stock price movement. The number of analysts tracking 3M (MMM) has more or less remained steady. Currently, 18 analysts are actively tracking 3M. Among the analysts, 39% recommended a “buy,” 39% recommended a “hold,” and 22% recommended a “sell.”

3M’s consensus target price is ~$202.8, which implies a return potential of 3.5% over the closing price of $195.9 on January 25. The consensus target price on 3M has marginally declined from $205.06 to the current target price.

Overall, analysts have remained cautious on the stock. 3M has made three downward revisions to its adjusted EPS. The strong dollar and concerns about an increase in raw material prices could dent 3M’s adjusted EPS, which might be why analysts’ views are divided.

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Brokerage recommendations

  • J.P. Morgan (JPM) has cut 3M’s target price to $158, which implies a decline of 19% over the closing price on January 25.
  • UBS (UBS) has cut 3M’s target price to $200 from $211, which implies a return potential of 2.1% over its closing price on January 25.
  • Barclays (BCS) has cut 3M’s target price to $189, which implies a decline of 3.5% over the closing price on January 25.

Investors could hold 3M indirectly by investing in the iShares U.S. Industrials ETF (IYJ), which has 3.6% of its portfolio in 3M as of January 25.

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