RBC Capital Raises 3M (MMM) Price Target to $130 but Maintains Underperform Rating

Core Viewpoint - 3M Company (NYSE:MMM) has shown modest growth in its third-quarter results, with a price target increase by RBC Capital, but faces significant risks from ongoing PFAS litigation [2][3][4]. Financial Performance - 3M reported adjusted sales of $6.3 billion for Q3 2025, reflecting a 3.2% year-over-year organic growth [3]. - The adjusted operating margin increased by 170 basis points to 24.7% [3]. - Adjusted earnings per share (EPS) rose to $2.19, marking a 10% increase from the previous year [3]. - The company generated $1.8 billion in operating cash flow and $1.3 billion in adjusted free cash flow during the quarter [4]. - 3M raised its 2025 adjusted EPS guidance from a range of $7.75 – $8.00 to $7.95–$8.05 [4]. - The company returned $0.9 billion to shareholders through dividends and share repurchases [4]. Analyst Insights - RBC Capital raised the price target for 3M from $120 to $130 while maintaining an Underperform rating [2]. - The analyst noted a broad-based operating beat supported by stronger organic growth and new product launches [2]. - Ongoing multi-billion-dollar PFAS litigation is highlighted as a significant risk that may not be fully appreciated by the market [2]. Company Overview - 3M is a diversified technology firm with a wide range of products used across various industries, including electronics, automotive, and consumer goods [5]. - Its product portfolio includes adhesives, abrasives, filtration solutions, safety equipment, and office essentials [5].