3M's New CEO Sparks Confidence, But Operational Shakeup and Liabilities Pose Challenges, Says Analyst
Portfolio Pulse from Shivani Kumaresan
3M's new CEO Bill Brown has sparked confidence in the company's turnaround, but significant challenges remain, including multi-billion dollar PFAS liabilities. RBC Capital Markets analyst Deane Dray reiterated an Underperform rating on 3M, raising the price target to $95. Other analysts from BofA Securities and Barclays have maintained Buy and Overweight ratings, respectively, with higher price targets. Despite positive momentum, 3M's operational shakeup could be disruptive.
July 29, 2024 | 4:41 pm
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NEUTRAL IMPACT
RBC Capital Markets analyst Deane Dray reiterated an Underperform rating on 3M, raising the price target to $95. Despite new CEO Bill Brown's confidence-inspiring comments, significant PFAS liabilities and potential disruption from operational changes pose risks. Other analysts from BofA Securities and Barclays have maintained Buy and Overweight ratings with higher price targets.
The mixed analyst ratings and the acknowledgment of both positive momentum and significant risks suggest a neutral short-term impact on 3M's stock price. The new CEO's confidence-inspiring comments are balanced by the substantial PFAS liabilities and potential operational disruptions.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100