3M Company’s (NYSE: MMM) shares surged more than 3% on Thursday, after Vertical Research Partners raised its investment rating on the stock to “Buy” from “Hold” previously.
Vertical Research Partners also bolstered its 12-month price target on 3M to $140 per share from $92 per share.
“There are still many uncertainties in the 3M outlook, but we believe the risk/reward now tilts clearly to the upside,” Jeff Sprague, analyst at Vertical Research Partners, wrote in a client note.
“New CEO Bill Brown took the helm on May 1. He has yet to lay out his priorities, but we expect a focus on rejuvenating growth while driving margins and cash flow.”
The industrial company is facing uncertainties such as legal liabilities for alleged water pollution and faulty earplugs for the US Military. 3M has agreed to pay nearly $18 billion to settle the charges.
Stock Performance
The shares of 3M Company (MMM) closed 3.58% ($3.62) higher at $104.86 in New York on Thursday, as they extended the gains from the previous six market sessions.
It has been the highest closing price for the stock since January 17th 2023.
The company’s total market cap now stands at $58.025 billion.
The shares of 3M Company (MMM) went down 8.84% in 2023, compared with a 24.23% gain for the benchmark index, S&P 500 (SPX).
The company’s shares have risen 14.73% so far this year.
Analyst stock price forecast and recommendation
According to TipRanks, at least 6 out of 11 surveyed investment analysts had rated 3M Company’s stock as “Hold”, while 4 – as “Buy”. The median price target on the stock stands at $110.00, which translates into a 4.90% upside compared to the closing price on Thursday.
The high point of the analyst forecast range stands at $140.00.
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