CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target to $100 from $120, valuing shares at 11x our 2024 EPS (reduced to $9.13 from $9.25; 2023 EPS forecast lifted to $9.00 from $8.66). We use a lower multiple than MMM’s five-year forward P/E average of 16.3x to reflect litigation and regulatory risks stemming from safety and environmental issues with multiple 3M products. MMM shares are trading higher today following the company’s Q3 print; it posted an adjusted EPS of $2.68 vs. $2.60 (+3% Y/Y), which is above both consensus and the company’s original guidance ($2.25-$2.40). We attribute the beat to better-than-expected gains made on productivity, supply chain restructuring, cost savings, and pricing across each of MMM’s businesses. Softness in electronics, consumer retail, and China, as well as disposable respirator volumes, led to a 3.1% decline in organic sales. Risks remain elevated at MMM, though we are encouraged by improvements on margin and progress made on settling outstanding litigation. We keep our Hold rating on shares.