Bank of America’s preview of 3M investor day

Investing.com -- Bank of America expects 3M Company (NYSE: MMM) to set financial targets at its upcoming investor day that are similar to those outlined in 2018, despite past shortfalls due to macroeconomic weakness, execution missteps, and litigation.

3M, which will host its investor day on Feb. 26, is likely to provide revenue, gross margin, and operating margin targets under CEO Bill Brown, BofA said.

The firm anticipates that the company’s long-term guidance will bracket the lower end of its multi-industrial peers, such as Illinois Tool Works (NYSE: ITW), which has set a 9-10% EPS growth target and 4%+ organic revenue growth.

BofA expects 3M to relaunch a refreshed version of its Priority Growth Platforms initiative, which was originally introduced in 2018 but saw limited follow-through due to COVID-19 and legal challenges.

The bank also sees a strong focus on improving gross margins, which rose in 2024 after three years of declines, as well as potential changes to 3M’s manufacturing footprint following its exit from PFAS production.

The firm reiterated its Buy rating on 3M, noting that new leadership is well-positioned to refocus the company on growth and operational improvements.

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