3M Co MMM shares traded higher Thursday after Morgan Stanley upgraded the stock from Underweight to Equal-Weight following the company's earplug settlement.
What To Know: Morgan Stanley analyst Joshua Pokrzywinski also raised the price target from $102 to $113.
Pokrzywinski described the company's risk/reward as more balanced. However, he noted a wide range of outcomes based on two factors: narrowing liability outcomes after the June PFAS settlement agreement and the Combat Arms settlement agreement and margin upside over the next few years.
Furthermore, he stated liabilities appear better discounted into shares, although they are likely to increase.
Pokrzywinski spoke about the liability regarding the Combat Arms litigation against 3M and Aearo Technologies and the settlement which was in the headlines recently. On Aug. 29, 3M announced it agreed to a roughly $6 billion settlement as a resolution. He anticipated the total liability to be roughly $18 billion in the bear case, roughly $8.6 billion in the base case and roughly $5.3 billion in the bull case.
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MMM Price Action: Shares of MMM were up 2.13% at $106.67 at market close Thursday, according to Benzinga Pro.
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