Is 3M Stock Going to $150? 1 Wall Street Analyst Thinks So.
3M's (NYSE: MMM) recent earnings resulted in a strong, very quick share price rise from about $103 to $127. As a result, a slew of Wall Street analysts rushed to upgrade their price targets for the stock.
The reason for the stock price jump is not so much the raised guidance in the report as it is new CEO William Brown's presentation on the earnings call, and Wall Street analysts pretty much acknowledged this in their upgrades and earnings commentary.
At the time of writing at least five analysts at Wall Street companies have upgraded price targets for 3M in the wake of the earnings report. Interestingly, Deutsche Bank's analyst upgraded to the highest target of $150 but maintained a "neutral" rating on the stock while referencing the potential for improvement at 3M. This dichotomy is a common theme among value investors. In other words, searching for a company whose operational metrics lag behind its peers and investing in them in expectation of improvement to come as management returns the company to a performance in line with its peers.
Source Fool.com