Christopher Snyder, an analyst from Morgan Stanley, maintained the Sell rating on 3M. The associated price target remains the same with $125.00.
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Christopher Snyder has given his Sell rating due to a combination of factors impacting 3M’s performance. One of the primary concerns is the company’s guidance for the second half of the year, which anticipates a significant increase in organic growth. However, this expectation is challenged by potential risks related to consumer elasticity and possible inventory reductions in the latter half of the year, following signs of overstocking in the first half.
Another factor contributing to the Sell rating is the uncertainty surrounding the company’s reported pre-buy figures in the first quarter. The management’s inability to precisely determine the level of pre-buy activity raises concerns about the accuracy of first-half volume figures, suggesting that second-half volumes may face challenges. Additionally, the limited impact of tariff pricing actions further complicates the company’s growth prospects, making it difficult for 3M to achieve the necessary volume acceleration for sustained growth.
According to TipRanks, Snyder is a 4-star analyst with an average return of 8.3% and a 55.17% success rate. Snyder covers the Industrials sector, focusing on stocks such as 3M, Fastenal Company, and Lennox International.
In another report released on July 16, RBC Capital also maintained a Sell rating on the stock with a $119.00 price target.