3M (NYSE:MMM) stock has had a tough year. It has barely moved from its January level and is up by less than 2% over the past 12 months. With its earnings due this week, top analysts from JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS), and Jefferies (NYSE:JEF) expect the stock to rebound.
Top Analysts are Bullish on 3M Stock
In a research note last week, Chigusa Katoku, a JPMorgan analyst boosted her target for the MMM stock price from neutral to overweight. She hiked the target from $178 to $180, arguing that the company will benefit from artificial intelligence demand.
Her argument is that AI spending will benefit several sectors, including those that 3M serves. Her target suggests that the stock may jump by about 11% from the current level. She said:
"We see growth taking hold at 3M, which is required to drive the next leg of EPS growth, with short-cycle indicators continuing to be supportive and AI/datacenter driven demand broadening out into parts of the economy outside of the obvious beneficiaries."
In June, Jefferies Group hiked its target from $170 to $175, while Goldman Sachs hiked the target to $190, up by 19% from the current level. The consensus target for 3M among analysts is $169.
3M, which makes tens of products, including Post-It Notes, Scotch Tape, N95 respirators, and abrasives, will publish its earnings on Tuesday. Analysts expect the results to show that its revenue rose by 4% in the second quarter to $6.4 billion. Its annual revenue is expected to jump by 3.5% to $25 billion.
William Brown, 3M’s CEO, has been working to turn around the company after it made some major mishaps. In 2024, the company reached a $12.5 billion settlement because of its forever chemicals. Before that, it reached a $6 billion settlement for selling faulty earplugs to the military.
The management is working on improving its operations through "3M Excellence", boosting its margins, and accelerating its innovation. It also acquired Madison Fire & Rescue in a $1.95 billion deal.
MMM Stock Technical Analysis
The daily chart shows that 3M shares have jumped from $139.47 in March to $159.85. It has already formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other.
It remains above the ascending trendline that links the lowest swings since May 4 this year. Also, it remains above the Supertrend indicator. Therefore, the stock will likely continue rising, initially to the June high of $169.76.
Image: Shutterstock