Analyst Andrew Obin from Bank of America Securities maintained a Buy rating on 3M and keeping the price target at $200.00.
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Andrew Obin has given his Buy rating due to a combination of factors tied to 3M’s new joint venture with Bain Capital and the acquisition of Madison Fire & Rescue. He highlights that combining Madison with 3M’s Scott Safety unit creates a larger, more competitive fire and rescue platform that should immediately support stronger growth and be at least neutral to slightly positive for earnings in the first year.
He also underscores that 3M retains control of the JV, gains $700 million in cash, and preserves future options such as an IPO or buying out Bain’s stake. In his view, attractive margins at both Madison and Scott Safety, planned cost and geographic synergies, limited impact on leverage, and the opportunity for operational improvement under new management together support maintaining a Buy rating on 3M.
In another report released on March 20, Barclays also maintained a Buy rating on the stock with a $190.00 price target.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MMM in relation to earlier this year.