RBC Capital analyst Deane Dray last night downgraded 3M Company (MMM) to Sector Perform from Outperform and lowered his price target for the shares to $176 from $207.
The stock closed Monday down 2% to $169.19.
The analyst expects the overhang on the shares from macro pressures and litigation to persist. After an "unsettling string" of guidance cuts, 3M's reputation as a "defensive, high-quality industrial is eroding," Dray tells investors in a research note. Further, PFAS litigation remains an "unquantifiable risk" that is likely to worsen as the product liability class actions escalate, adds the analyst.
Dray also sees risk of more guidance cuts from 3M as well as limited capital allocation catalysts.
Comments
Log in or sign up to join the conversation.