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Problems at 3M: Financial experts lower price target and recommend selling the stock
There is simply no turning point in sight. The price development of the dividend classic from the USA remains weak. 3M is still clearly in a downward trend. An already skeptical financial house reduced the price target for the share this week following the trend. There are practically no dissenting voices from analysts these days. The Canadian investment bank RBC Capital Markets has lowered its price target for 3M from $100.00 to $85.00 - and maintains its sell recommendation for the stock. RBC's price target is at the lower end of the range. The Bloomberg database records an average price target of $108.53 for 3M - although with a downward trend. RBC complained about...
Problems at 3M: Financial experts lower price target and recommend selling the stock
The Canadian investment bank RBC Capital Markets has lowered its price target for 3M from $100.00 to $85.00 - and maintains its sell recommendation for the stock. RBC's price target is at the lower end of the range. The Bloomberg database records an average price target of $108.53 for 3M - although with a downward trend.
RBC criticized 3M, among other things, for continued weakness in the areas of electronics, end customer business and China. Added to this are the ongoing legal disputes. In this regard, RBC sees the issue of perennial chemicals (PFAS) at risk of an after-tax and insurance burden of $25 billion. 3M continues to face PFAS lawsuits. DER AKTIONÄR had also already reported on the legal risks and the likely billions in payments associated with them, which make future dividend increases seem at least questionable.
This month, 3M received ten updated analyst estimates from well-known financial firms. There was no purchase recommendation among them. The majority of the ratings were simply “hold”, including from JPMorgan (price target: $104.00), Citi (target: $95.00) and Goldman Sachs ($106.00). In addition to RBC, the British bank Barclays also advised selling in October. The price target of $96.00 has now been significantly undercut.
According to a report by www.deraktionaer.de, the price development of the dividend classic 3M from the USA remains weak and is in a clear downward trend. The Canadian investment bank RBC Capital Markets has reduced the price target for 3M shares from $100.00 to $85.00 and continues to recommend selling the stock. Other financial houses such as JPMorgan, Citi and Goldman Sachs also only give a hold recommendation. Analysts criticize 3M's continued weakness in the areas of electronics, consumer business and China. In addition, RBC sees the risk of billions in charges for 3M due to legal disputes relating to perpetual chemicals. As a result, it remains questionable whether future dividend increases are possible and the downward trend continues.
RBC Capital Markets' recommended sell recommendation and price target reduction are likely to have a negative impact on the market for 3M shares. Since the price target is at the lower end of the range and legal risks remain for the company, investors may become concerned and sell their shares. This could lead to a further price decline. The report also mentions the declining trend of 3M's average price target in the Bloomberg database, suggesting that other analysts are also becoming increasingly pessimistic.
3M's weakness in electronics, consumer business and China could have consumer and industry implications. Electronics companies that rely on 3M products could face problems because the company may not be able to deliver the quality and performance they desire. Consumer customers may also look for alternatives if 3M cannot address its weakness. In China, 3M could lose market share if Chinese consumers lose trust in the company and its products.
Read the source article at www.deraktionaer.de