Jefferies analyst Laurence Alexander has maintained their neutral stance on MMM stock, giving a Hold rating today.
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Laurence Alexander has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in 3M’s financial outlook. The company reported a stronger-than-expected performance in the second quarter, with earnings per share exceeding both Jefferies’ estimates and market consensus. This was driven by gains in various segments such as Safety & Industrial and Transportation & Electronics, alongside favorable tax impacts. However, despite these positive results, the overall market environment remains sluggish, and 3M’s organic sales growth is projected to be modest at around 2%.
Looking ahead, 3M has raised its earnings projection for 2025, but the outlook for the second half of the year remains conservative. While the company is making strides in productivity and cost-cutting measures, challenges such as tariffs and litigation costs persist. Additionally, while new product launches and market share gains are expected to support growth, the underlying market trends show limited improvement. These mixed factors contribute to the decision to maintain a Hold rating, suggesting that while there are positive developments, potential risks and uncertainties temper the overall outlook.
In another report released today, Mizuho Securities also reiterated a Hold rating on the stock with a $155.00 price target.