Shares of industrial conglomerate 3M (NYSE: MMM) were up by 2.4% by 11 a.m. today. The move comes as the market digests the news that 3M will exit per- and polyfluoroalkyl substance (PFAS) manufacturing and aims to discontinue using PFAS in its products by 2025.
PFAS substances are believed to be toxic and harmful and have led to lawsuits and pressure on 3M from lawyers and environmental agencies. As such, the threat of substantive PFAS-related liabilities has hung over the stock.
The recent news won't take away that threat, but it may help to de-risk the stock, given that 3M won't be producing or using PFAS in the future.
Source Fool.com