3M: Deutsche Bank upgrades to 'buy', targets $150

(CercleFinance.com) - On Monday, Deutsche Bank upgraded 3M shares from 'hold' to 'buy', with a target price raised from $110 to $150.


Since Bill Brown took over as CEO in mid-March, we've been hearing flattering anecdotes about him from former colleagues and investors following his time at L3Harris, the broker says.

We wanted to see for ourselves his priorities and his ability to improve things under his leadership, the analyst explains.

From this point of view, Deutsche Bank is 'very impressed' by the CEO's first speech to Wall Street, and by the attention he paid to 3M's potential for progress, not only in terms of costs but also in terms of growth.

For the professional, 3M is now in a position to quickly return to an adjusted operating margin of around 25%, which could lead investors to take a renewed interest in the stock and help it to perform well after four years of underperformance.

His new TP thus represents 18% upside potential.


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