Deep Dive Into 3M Stock: Analyst Perspectives (6 Ratings)

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In the preceding three months, 6 analysts have released ratings for 3M MMM, presenting a wide array of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 0 4 2 0
Last 30D 0 0 0 1 0
1M Ago 0 0 0 0 0
2M Ago 0 0 3 1 0
3M Ago 0 0 1 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $99.5, along with a high estimate of $112.00 and a low estimate of $84.00. Observing a downward trend, the current average is 3.24% lower than the prior average price target of $102.83.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of 3M by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Deane Dray RBC Capital Lowers Underperform $84.00 $85.00
Deane Dray RBC Capital Raises Underperform $87.00 $83.00
Brett Linzey Mizuho Lowers Neutral $105.00 $120.00
Andrew Kaplowitz Citigroup Lowers Neutral $104.00 $117.00
Joe O'Dea Wells Fargo Lowers Equal-Weight $105.00 $112.00
Joe O'Dea Wells Fargo Raises Equal-Weight $112.00 $100.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to 3M. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of 3M compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for 3M's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of 3M's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on 3M analyst ratings.

Unveiling the Story Behind 3M

3M is a multinational conglomerate that has operated since 1902, when it was known as Minnesota Mining and Manufacturing. The company is well known for its research and development laboratory and it leverages its science and technology across multiple product categories. As of 2020, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. Nearly 50% of the company's revenue comes from outside the Americas, with the safety and industrial segment constituting a plurality of net sales. Many of the company's 60,000-plus products touch and concern a variety of consumers and end markets.

Key Indicators: 3M's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, 3M faced challenges, resulting in a decline of approximately -0.82% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: 3M's net margin excels beyond industry benchmarks, reaching 11.79%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): 3M's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 19.94%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.89%, the company showcases effective utilization of assets.

Debt Management: 3M's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.51, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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