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Investing.com - Morgan Stanley upgraded 3M (NYSE:MMM) from Underweight to Equalweight on Tuesday, raising its price target to $160.00 from $130.00. The stock, currently trading at $166.64, has shown strong momentum with a 20% gain year-to-date. According to InvestingPro data, analyst targets for the stock range from $101 to $188.
The upgrade comes as the investment bank sees a more constructive near-term setup for the industrial conglomerate, citing lowered organic growth expectations, equity de-rating, and emerging signs of self-help initiatives since its underweight rating a year ago. The $88.6 billion company maintains a "Fair" overall financial health score according to InvestingPro’s comprehensive analysis, with particularly strong marks in profitability metrics.
Morgan Stanley noted that while its updated $160 price target matches current trading levels, the firm’s bull versus bear scenario now presents a positive risk-adjusted return outlook for the stock.
The firm raised its 2026-27 organic growth assumptions for 3M, reflecting confidence in management’s turnaround initiatives taking hold at the company.
Morgan Stanley also indicated it is applying a higher multiple to 3M’s earnings stream as management demonstrates "an ability to bifurcate growth from the macro," which the firm views as evidence of a higher quality and more durable business.
In other recent news, 3M Company reported a robust performance in the third quarter of 2025, showcasing significant growth in sales and operating margins. The company’s earnings per share (EPS) reached $2.19, reflecting a 10% increase compared to the previous year. Additionally, 3M has raised its full-year EPS guidance, now projecting a range of $7.95 to $8.05. Organic sales saw a 3.2% increase, marking the fourth consecutive quarter of positive growth. Despite a challenging macroeconomic environment, these developments highlight 3M’s resilience and strategic progress.
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