3M (NYSE:MMM) stock rating downgraded by Zacks Investment Research

3M (NYSE: MMMGet a rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note released Friday to investors, Zacks.com reports. They currently have a price target of $159.00 on shares of the conglomerate. Zacks Investment ResearchThe stock’s target price suggests a potential upside of 6.60% from the stock’s previous close.

According to Zacks, “3M appears well positioned to benefit from its strong product portfolio, marketing activities and shareholder-friendly policies. Sound business in electronic materials, home improvement, manufacturing, health IT, automotive/mobility and wound care will be tailwinds. The company’s ability to generate significant cash flow adds to its strength. For 2022, he forecasts total revenue growth of 1-4%, with organic growth of 2-5%. Revenue is expected to be $10.15 to $10.65, suggesting an increase from $10.12 in 2021. However, he expects demand for disposable respirators to decline in 2022, hurting organic growth of 2% and earnings of 45 cents. Headwinds related to logistics and raw material costs are expected to be between $350 million and $450 million and currency issues are expected to hurt sales by 1%. Over the past three months, the stock has underperformed the industry.

A number of other analysts also weighed in on MMM. Royal Bank of Canada cut its target price on 3M stock from $155.00 to $147.00 and placed an “underperform” rating on the stock in a Tuesday, Feb. 15 research report. Argus reduced its price target on 3M shares from $225.00 to $190.00 in a report on Wednesday, January 26. Mizuho cut its price target on 3M stock from $180.00 to $170.00 and set a “neutral” rating on the stock in a report on Tuesday, February 15. StockNews.com began covering 3M shares in a report on Thursday, March 31. They have placed a “holding” rating on the stock. Finally, Credit Suisse Group cut its price target on 3M stock from $195.00 to $182.00 and set a “neutral” rating on the stock in a Tuesday, February 15 report. Six research analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have assigned the company’s stock a buy rating. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $169.13.

3M Stock traded lower from $2.62 in Friday’s midday session, hitting $149.15. The company had a trading volume of 32,326 shares, compared to an average volume of 3,340,330. 3M has a fifty-two week low of $139.74 and a fifty-two week high of $208.95. The company has a current ratio of 1.70, a quick ratio of 1.15 and a debt ratio of 1.06. The company has a market capitalization of $84.89 billion, a P/E ratio of 14.73, a P/E/G ratio of 1.52 and a beta of 0.97. The company has a fifty-day simple moving average of $148.40 and a 200-day simple moving average of $166.51.

3M (NYSE: MMMGet a rating) last released its results on Tuesday, January 25. The conglomerate reported earnings per share of $2.31 for the quarter, beating analysts’ consensus estimate of $2.03 by $0.28. 3M had a net margin of 16.75% and a return on equity of 40.84%. The company posted revenue of $8.61 billion for the quarter, versus analyst estimates of $8.58 billion. In the same quarter last year, the company posted earnings per share of $2.38. The company’s quarterly revenue increased 0.3% year over year. Research analysts expect 3M to post EPS of 10.22 for the current year.

Institutional investors and hedge funds have recently bought and sold shares of the company. DB Fitzpatrick & Co Inc bought a new stake in 3M in the fourth quarter worth $29,000. Ritter Daniher Financial Advisory LLC increased its stake in 3M to 98.9% in the fourth quarter. Ritter Daniher Financial Advisory LLC now owns 179 shares of the conglomerate valued at $32,000 after acquiring 89 additional shares in the last quarter. US Asset Management LLC bought a new position in 3M in the first quarter worth about $34,000. First Quadrant LLC CA bought a new position in 3M in the first quarter worth approximately $34,000. Finally, Atticus Wealth Management LLC bought a new position in 3M in the fourth quarter worth about $36,000. 66.06% of the shares are held by hedge funds and other institutional investors.

3M Company Profile (Get a rating)

3M Company operates as a diversified technology company around the world. It operates through four segments: Security and Industry; Transportation and Electronics; Health care; and Consumer. The Safety and Industrial segment offers industrial abrasives and finishes for metalworking applications; body repair solutions; closure systems for personal hygiene products, masking and packaging materials; electrical products and materials for construction and maintenance, power distribution and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye and fall protection solutions; and natural and colored mineral granules for shingles.

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