3M (MMM) PT Raised to $179 at BofA Securities

BofA Securities analyst Andrew Obin raised the price target on 3M (NYSE: MMM) to $179.00 (from $175.00) while maintaining a Buy rating.

The analyst comments "The settlements of Combat Arms and Public Water Suppliers in 2023 represent ~40% of legal liabilities by our estimate. 3M has three remaining areas of potential legal liability: natural resource damage, personal injury, and Superfund sites. Key takeaways: 1) Personal injury cases are likely being pushed out to 2026. 2) Superfund enforcement actions are likely pushed out to 2029. 3) We are watching international lawsuits but historical settlements suggest these will likely be manageable. 4) Ongoing cases in New Jersey and Vermont are more headline versus material financial risk, in our view. 5) At the February investor day, CEO Brown indicated material insurance recoveries by 2027; these are not in our forecasts, but have historically been 20+% of total settlements. 3M has already received over $0.3bn in cash from insurers. We raise our price objective by $4 to $179 on a lower net present value of liabilities. Our price objective is based on a 14x 2026E EV/EBITDA multiple (previously 13.5x), a discount to the 15x peer average on 2025 given legal uncertainties. We reiterate our Buy rating given renewed focus on execution, gross margin expansion, and accelerating organic revenue growth."

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