Citi Raises 3M (MMM) Price Target, Keeps Neutral Rating

On Friday, May 30, Citi analyst Andrew Kaplowitz increased the price target for 3M Company (NYSE:MMM) from $141 to $160 and reiterated a “Neutral” rating. This decision came after a meeting with the company’s management where the company’s new direction under its new leadership was talked about.

Kaplowitz pointed out that 3M Company (NYSE:MMM) seems to be moving towards improved performance, highlighting a “renewed focus” by the company’s management. The analyst is confident that the company can achieve improved margins. This belief is supported by clear signs of progress and a robust pipeline of general and administrative (G&A) as well as gross margin improvement opportunities.

Citi Raises 3M (MMM) Price Target, Keeps Neutral Rating

A specialized industrial laboratory, filled with high-tech machinery for producing abrasives.

Despite these positives, Kaplowitz also noted that 3M Company (NYSE:MMM) still has work to do in certain areas, especially in terms of growth. The analyst explained that the company’s new focus on innovation looks good, but it may take time for these efforts to drive growth.

The higher price target reflects an increase in the price-to-earnings (P/E) ratio the analyst uses to value 3M Company (NYSE:MMM). Kaplowitz increased it by two times as he expects the company’s performance to improve.

3M Company (NYSE:MMM) is an American multinational conglomerate that develops and manufactures a wide range of products. The company serves various industries like Automotive, Commercial Solutions, Consumer Markets, Design and Construction, Electronics, Energy, Health Care, Manufacturing, Safety, and Transportation.

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