Melius upgraded the St. Paul, Minn., company's stock to a buy equivalent from hold while raising its price target to $205 a share from $191. The new target indicates 38% potential upside over current levels.
The stock of 3M has fallen nearly 30% over the past 12 months, including a more than 13% decline year to date.
At last check 3M shares were trading up 3.3% at $153.85. They're one of the few members of the Dow Jones Industrial Average in the green on Thursday.
Only about 10% of analysts covering the company have the equivalent of a buy rating on 3M. The average stock in the DJIA has buy ratings from 55% of the covering analysts.
Melius is bullish on on 3M because the type of short-cycle products it makes have been down for longer than usual. These kinds of products, like surgical masks, are bought and sold many times a year.
"It's short cycle, now coming up on a full five quarters of a recession and ninth quarter of weak results," the firm wrote.
"We've had five meaningful negative earnings revisions ... and a normal down cycle is four to six quarters,” Melius’s note said. “But it's one of our few names with a flu/coronavirus hedge - since 3M is the largest U.S. supplier of N95 respirator masks."