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Barclays upgrades 3M; more attractive 'risk/reward' basis

March 19, 2024 10:16 AM

Investing.com - Barclays has taken a more optimistic view on 3M Company (NYSE: MMM), upgrading its investment stance and lifting its target price, seeing further portfolio and cost structure optimization ahead.


Barclays upgraded its stance on the multinational conglomerate to ‘overweight’ from ‘equal weight’, and lifted its price target to $126 from $111.


At 09:55 ET (13:55 GMT), 3M stock traded 0.4% higher at $105.23.


The bank noted that 3M has announced a new CEO, who is set to start in May, and this change is likely to yield a portfolio review, as well as additional productivity measures, and thus higher margins.


Barclays also noted that the company had made further progress on its non-debt/environmental liabilities, while its relative valuation has moved to an even larger discount, as its peers have re-rated sharply higher in recent months.


“Hence, we now see a more attractive risk/reward than we did in late 2023, as well as an increased range of potential catalysts ahead, to drive a re-rating higher of MMM's very low valuation,” the bank’s analysts said, in a note dated March 19.


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