3M’s Favorable Legal Settlements and Strategic Risk Management Support Buy Rating

In a report released yesterday, Andrew Obin from Bank of America Securities maintained a Buy rating on 3M (MMM – Research Report), with a price target of $170.00.

Andrew Obin has given his Buy rating due to a combination of factors surrounding 3M’s recent legal settlements and financial outlook. The company reached a significant settlement with New Jersey, addressing PFAS-related claims, which is seen as a positive step towards resolving ongoing litigation issues. This settlement, particularly the $75 million agreement for New Jersey’s Natural Resource Damage claim, is notably lower on a per-person basis than previously anticipated, suggesting a more favorable financial outcome for 3M.
Additionally, the settlement amount implies a potential reduction in the total estimated liability for personal injury settlements, which could positively impact 3M’s financial position. The company’s proactive approach in notifying insurance carriers for coverage claims further supports its strategic risk management. These developments, coupled with a price objective of $170.00 USD against the current price of $150.33 USD, underpin the Buy rating as they reflect a potential upside in 3M’s stock value.

According to TipRanks, Obin is a 5-star analyst with an average return of 11.9% and a 61.26% success rate. Obin covers the Industrials sector, focusing on stocks such as 3M, Vertiv Holdings, and Honeywell International.

In another report released today, Barclays also maintained a Buy rating on the stock with a $164.00 price target.