3M Stock Has 20% Upside, According to 1 Wall Street Analyst
A analyst recently lowered his price target on 3M (NYSE: MMM) stock to $110 from $118 and retained his neutral rating on it. That new price target still anticipates a near-20% upside over 12 months from the current price of about $92, highlighting the stock's value case.
It looks like a downgrade, but in reality, the change reflects the spin off of 3M's healthcare business, now trading as Solventum (NYSE: SOLV). 3M shareholders received one share of Solventim for every four they held in 3M. As such, Solventum's stock price of $61.75 equates to $15.44 in "old 3M." Adding the $15.44 to 3M's $91 price gives an "old 3M" price of about $106.40.
The analyst's previous price target for "old 3M" was $118, implying an 11% upside. The updated price target after the spinoff is $110, implying a 20% upside. So even though the price target fell, it could still be considered an upgraded price target.
Source Fool.com