UBS analyst Amit Mehrotra has maintained their bullish stance on MMM stock, giving a Buy rating on January 16.
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Amit Mehrotra has given his Buy rating due to a combination of factors tied to both valuation and earnings visibility. He argues that the stock’s sharp decline following the fourth-quarter release is disproportionate, especially since long-term 2026 earnings projections remain intact and the drop is largely due to a lower valuation multiple. Mehrotra notes that while profit growth is expected to slow from 2025 to 2026, this is primarily the result of higher spending and other temporary pressures rather than a deterioration in the core business.
At the same time, he highlights that 3M is still on track to generate sizable gains from higher volumes and efficiency improvements in 2026, exceeding what was achieved in 2025, even though these gains are partly masked by elevated investments, stranded costs, and tariff-related headwinds. Mehrotra believes many of these negative factors are non-structural and could fade or reverse by 2027, allowing more of the operational improvements to translate into profit growth in the mid-teens range. Because the underlying earnings outlook is steady and upside exists beyond 2026, he views the current weakness in MMM shares as an attractive entry point for investors.
Mehrotra covers the Industrials sector, focusing on stocks such as 3M, Dover, and Eaton. According to TipRanks, Mehrotra has an average return of 6.4% and a 54.31% success rate on recommended stocks.
In another report released on January 16, Bank of America Securities also maintained a Buy rating on the stock with a $200.00 price target.