3M: biggest rise on the Dow Jones, BofA upgrades to buy
June 07, 2024 at 08:02 pm IST
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3M shares posted the biggest rise on the Dow Jones on Friday, benefiting from a change of recommendation by Bank of America to buy on the diversified industrial group.
The intermediary hails the arrival of a new CEO, Bill Brown, who he believes should refocus the American conglomerate's strategy with a view to re-accelerating growth.
In addition, 3M has managed to settle out-of-court the litigation surrounding its hearing protection for firearms shooting and that linked to eternal pollutants (PFAS), which should allow investors to take a look at its low stock market valuation, BofA adds in a note.
Shortly before 10:00 a.m. (New York time), the stock had gained over 1%, compared with a 0.2% decline for the Dow Jones, bringing the year-to-date gain to over 8%.
BofA now specifies a new price target of $120.
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3M Company is an industrial group organized around four product families:
- industrial products, safety and graphics materials (33.5% of net sales including intra-group): abrasive products, adhesives, cleaners, air and liquid filtration systems, anti-slip coating products, fire protection systems, road signage products, etc. The group also provides display equipment and graphics systems;
- electronics and energy products (26%): interconnection products, connectors, optical components, etc.;
- healthcare products (25.1%): orthopedic, chirurgical and respiratory materials, feminine hygiene products, dental products, etc.;
- consumer goods (15.4%): adhesive tape, self-adhesive papers, filters, projectors, screen supports, etc.
Net sales are distributed geographically as follows: Americas (56.2%), Asia/Pacific (25.9%), and Europe/Middle East/Africa (17.9%).
3M COMPANY 
