HSBC Analyst Upgrades 3M Stock Price Target to $115 with Buy Rating

Tuesday, 14 May 2024, 15:17
HSBC analyst raised the price target on 3M stock to $115 from $91, implying a nearly 15% upside over the next 12 months. The upgrade is driven by positive restructuring actions, expanding profit margins, and forecasted sales growth. Despite recent challenges, including a dividend cut, 3M's potential for margin expansion and improving end markets make it a compelling investment opportunity.
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HSBC Analyst Upgrades 3M Stock Price Target to $115 with Buy Rating

Rationale behind the upgrade

The HSBC analyst notes that 3M's recent restructuring actions are bearing fruit, with profit margins expanding and forecasted sales growth.

Some key end markets, such as semiconductors and electronics, are showing signs of improvement in 2024.

  • The Solventum spinoff will bring $7.7 billion in cash to 3M
  • Dividend cut strengthens the balance sheet

A stock with potential

The analyst upgrades based on 3M's undervalued potential and ongoing restructuring program to drive margin expansion.

Legal settlements and dividend cut reduce uncertainty and bolster future prospects.

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