Barclays analyst Julian Mitchell upgraded 3M Company ( MMM ) to Overweight from Equal Weight and raised the price target to $126 from $111.

The analyst is bullish on the stock partly due to a smaller headwind from estimated / unannounced non-debt / environmental liabilities. 

Also, the analyst said that the appointment of a new CEO (due to start in May) will likely yield a portfolio review and additional productivity measures / higher margins.

Moreover, the analyst stated that the company is further along in the bottoming demand phase of Short Cycle Industrial and Electronics markets, which comprise 35%-40% of 3M RemainCo’s sales, and the analyst is expecting a recovery in the remainder of 2024. 

Mitchell now estimates EPS of $9.88 in 2024 and $7.64 in 2025.

Today, Solventum said it expects to spin off from 3M ( MMM ) on April 1, 2024, and will be listed on the New York Stock Exchange as “SOLV.”

Solventum expects organic revenue growth of -2% to 0%, adjusted EPS of $6.10-$6.40, and free cash flow of $700 million-$800 million.

In January, 3M ( MMM ) fourth-quarter FY23 adjusted EPS that beat estimates at $2.42, while adjusted net sales of $7.69 billion slightly missed expectations.

Price Action: MMM shares are up 0.10% at $104.90 on the last check Tuesday.