Shares are gaining 0.02% to $157.11 in Monday morning trading.
The company, formerly known as the Minnesota Mining and Manufacturing Co., now operates as a diversified technology company.
The firm cited that the price target change reflects a reevaluation of target EV/EBITDA and P/E multiples against relevant peers within the electrical equipment and multi-industry sector.
Several risks are associated with acquisitions, if the company undertakes large acquisitions with its under-levered balance sheet, according to the analyst note. Additionally, the electronics & energy business is highly cyclical and volatile.
Insight from TheStreet Rating's Team:
3M is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. During the most recent weekly roundup, this is what Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock:
We continue to view 3M as a high-quality, durable franchise with a strong R&D competency and best-in-class margins/ROIC (return on invested capital). Many analysts see little upside to 3M's margins, but we think this is a lazy view as the company has an incredible ability to continuously extract efficiencies in the face of skepticism.
This, coupled with above-average top-line growth and massive share buybacks, makes us believe earnings growth will be differentiated vs. peers. Finally we have immense trust in the company's renowned management team and believe they will find a way to continue delivering above and beyond analyst expectations. Our price target is $185.
-Jim Cramer and Jack Mohr 'Weekly Roundup' Originally Published on 6/5/15 on Action Alerts Plus.
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Separately, TheStreet Ratings team rates 3M CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate 3M CO (MMM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
You can view the full analysis from the report here: MMM Ratings Report