Barclays has increased its price target for 3M (MMM, Financial) from $170 to $172 while maintaining an Overweight rating on the company's shares. This adjustment follows a positive assessment of 3M's second-quarter results, which displayed strong capital deployment and solid margin performance, even amidst the challenges posed by tariffs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for 3M Co (MMM, Financial) is $158.53 with a high estimate of $187.00 and a low estimate of $102.34. The average target implies an upside of 3.46% from the current price of $153.23. More detailed estimate data can be found on the 3M Co (MMM) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, 3M Co's (MMM, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for 3M Co (MMM, Financial) in one year is $78.88, suggesting a downside of 48.52% from the current price of $153.23. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the 3M Co (MMM) Summary page.
MMM Key Business Developments
Release Date: July 18, 2025
- Adjusted Earnings Per Share (EPS): $2.16, up 12% year-over-year.
- Organic Sales Growth: 1.5% across all business groups.
- Operating Margins: Increased by 290 basis points year-on-year.
- Free Cash Flow: $1.3 billion with a 110% conversion rate.
- Revenue Growth by Geography: China up mid-single digits; US up low single digits; Europe flat.
- Adjusted Operating Margins: 24.5%, up 290 basis points.
- Safety and Industrial Organic Sales Growth: 2.6% in Q2.
- Transportation and Electronics Organic Sales Growth: 1% in Q2.
- Consumer Business Organic Sales Growth: 0.3% in Q2.
- Shareholder Returns: $3 billion returned via dividends and share repurchases in the first half.
- Updated EPS Guidance: Increased to a range of $7.75 to $8.00.
- Free Cash Flow Conversion Guidance: Expected to be higher than 100% for the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- 3M Co (MMM, Financial) reported a strong second quarter with adjusted earnings per share of $2.16, up 12% from the previous year and exceeding expectations.
- The company achieved organic sales growth of 1.5%, marking the third consecutive quarter of positive growth across all business groups.
- Operating margins increased by 290 basis points year-on-year, driven by productivity improvements and cost controls.
- 3M Co (MMM) launched 64 new products in Q2, a 70% increase from the previous year, contributing to a healthy product pipeline.
- The company returned $3 billion to shareholders in the first half of the year through dividends and share repurchases, demonstrating strong capital deployment.
Negative Points
- The macroeconomic environment remains sluggish, with global economic indicators such as IPI and GDP showing little improvement.
- The automotive and consumer electronics sectors are expected to face challenges in the second half due to slower demand and industry pressures.
- 3M Co (MMM) faces ongoing legal challenges related to PFAS, with over 30 state attorney general cases still pending.
- The company anticipates a gross tariff impact of $0.20 per share for the year, which will affect second-half margins.
- Stranded costs are expected to increase in the second half, impacting overall profitability.
