Market Overview

RBC: 3M Remains One Of The Strongest Industrials

RBC: 3M Remains One Of The Strongest Industrials

3M Co (NYSE: MMM)’s downslope over the past four months has created a potentially attractive entry point for what RBC Capital Markets views as one of the strongest multi-industry stocks.

The Analyst

RBC's Deane Dray upgraded 3M from Sector Perform to Outperform and lifted the stock’s price target from $227 to $238.

The Thesis

3M’s downslope in recent months has pushed shares below their historical relative P/E support level, providing an entry point for investors, Dray said in a Thursday note. 

First-quarter earnings were a disappointment, but that was likely due to shorter-term weakness in end markets rather than widespread macro deterioration, the analyst said.

“From what we can gauge, the recent 1Q18 earnings pressure stemmed from familiar and contained end market-specific dynamics, including weakness in auto, dental and consumer electronics." 

3M remains one of the strongest industrial names and achieves the highest operating margins and ROIC in the sector, Dray said. 

“At this stage of the economic cycle, our bias is to recommend higher-quality names in our multi-industry coverage." 

Price Action

3M shares were up 0.89 percent at $196.27 at the time of publication Thursday. 

Related Links:

Benzinga's Top Upgrades, Downgrades For May 3, 2018

Benzinga Pro's 5 Stocks To Watch Today 

Latest Ratings for MMM

Jul 2020Credit SuisseMaintainsOutperform
Jul 2020Morgan StanleyMaintainsEqual-Weight
Jul 2020BarclaysMaintainsUnderweight

View More Analyst Ratings for MMM
View the Latest Analyst Ratings


Related Articles (MMM)

View Comments and Join the Discussion!

Posted-In: Deane Dray RBC Capital MarketsAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

BMCHB. Riley FBRUpgrades37.0
EATJefferiesInitiates Coverage On34.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at