3M stock price target lowered to $117 by RBC Capital on tepid outlook

Published 21/07/2025, 15:46
3M stock price target lowered to $117 by RBC Capital on tepid outlook

Investing.com - RBC Capital has lowered its price target on 3M (NYSE:MMM) to $117.00 from $119.00 while maintaining an Underperform rating following the company’s second-quarter 2025 results. According to InvestingPro data, 3M’s stock currently trades at $151.28, showing a strong YTD return of 19.87%, though analysis suggests the stock may be overvalued at current levels.

The industrial conglomerate reported quarterly results that matched RBC’s recently raised estimates, which had accounted for higher foreign exchange contributions during the period.

3M has updated its guidance to include a modest 10-cent net headwind from tariffs, a reduction from the previously estimated 20-to-40-cent impact that had been excluded from earlier forecasts.

Despite 3M raising its guidance approximately 2% above consensus and highlighting positive developments in new CEO Bill Brown’s turnaround initiatives, the stock underperformed in recent trading.

RBC attributes the tepid market reaction partly to 3M’s underwhelming 2% organic revenue outlook and notes that PFAS-related legal risks have returned to investors’ attention, with personal injury cases scheduled to begin in October 2025 and more than 30 state attorneys general pushing for near-term settlements.

In other recent news, 3M has reported better-than-expected quarterly earnings, with a 4% operating profit beat and a 7% EPS beat, prompting UBS to reiterate a Buy rating with a $184 price target. The company has also raised its full-year guidance to $7.88 per share at the midpoint, surpassing previous estimates. Meanwhile, Mizuho (NYSE:MFG) has maintained a Neutral rating with a $155 price target after 3M’s Q2 earnings exceeded expectations, driven by strong performance in the Transportation & Electronics segment. Citi has raised its price target for 3M to $160, also maintaining a Neutral rating, citing the company’s positive trajectory under new management. The annual shareholder meeting saw the re-election of 11 board members and the ratification of PricewaterhouseCoopers LLP as the independent accounting firm for 2025. Shareholders also approved the executive compensation policies, reflecting confidence in the company’s strategic direction. These developments are part of 3M’s ongoing efforts to engage shareholders and ensure transparency.

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