Earnings forecast raised: Analysts react to 3M's latest figures with different recommendations

Earnings forecast raised: Analysts react to 3M's latest figures with different recommendations

Profit forecast raised - since this news on Tuesday, the price of 3M shares has at least been able to approach an initial resistance area around $90. However, the rally promptly stalled there yesterday. Meanwhile, analysts have reacted to 3M's latest figures. Only Morningstar gave 3M a buy recommendation with a price target of $124.00. However, there were sell recommendations from RBC Capital ($83.00) and Barclays ($98.00). The rest positioned themselves “neutral”, which corresponds to the recommendation “Hold” (including: Goldman Sachs with a price target of $107.00 and JPMorgan with a price target of $105.00). The average price target from analysts is currently $109.41.

3M's latest quarterly results exceeded analysts' estimates, with earnings per share of $2.68 and revenue of $8.02 billion. However, there was actually a loss of $3.74 per share due to current legal disputes. Nevertheless, the operational business has apparently developed somewhat better than feared. 3M also announced a partnership with Swedish start-up Exeger Sweden AB. The partnership will develop solar-powered safety equipment for workers by integrating Exeger solar cells into 3M products.

Analysts are divided on 3M's future prospects. While some issue sell recommendations and set low price targets, Morningstar sees great potential and assigns a buy recommendation with a price target of $124.00. The average price target is currently $109.41. The partnership with Exeger Sweden AB could have a long-term positive impact on 3M's business, particularly in the area of ​​solar-powered safety equipment. The market for renewable energy and sustainability could continue to grow through such innovations.

Source: According to a report by www.deraktionaer.de