Financial expert analyzes: Why 3M shares continue to be viewed critically despite the recovery.

Financial expert analyzes: Why 3M shares continue to be viewed critically despite the recovery.

According to a report by www.deraktionaer.de,

The American conglomerate 3M has recovered by 28 percent since its multi-year low in October and has broken through important chart marks. However, analysts are cautious, with only 2 out of 21 experts recommending buying. Deane Dray of RBC Capital Markets rated 3M Underperform, while most others had a Neutral stance. The average price target is even below the current price level. The stock hit its highest level since August on Wednesday and faces further resistance.

The technical chart prospects at 3M have brightened noticeably, indicating a recovery. The P/E ratio of 11 for 2024 and the dividend yield of around 5.5 percent also speak for the title.

As an economist, it is important to note that despite the stock's recovery, analysts' cautious assessment could indicate that further resistance could be in the way. If the share does not overcome the above-mentioned resistance, this could lead to stagnation or even a further downward movement. On the other hand, the low P/E ratio and high dividend yield indicate long-term stability, which could be attractive to investors. However, investors should closely monitor market movements to make informed decisions.