Industrial product manufacturer 3M (NYSE:MMM) and the multi-industry specialty solutions company DuPont (NYSE:DD) have come under fire recently for manufacturing or supplying hazardous chemicals. The state of California filed a suit against the companies and 16 other manufacturers of Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) for endangering consumers’ health.
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PFAS are commonly found in fabrics, food packaging, cookware, etc. —things closely associated with items that are either ingested or kept in close contact with the body. These chemicals have been found to be carcinogenic and may also cause other serious health issues.
The lawsuit filed in Alameda County Superior Court on Thursday said that the companies produced the harmful chemicals for years despite being aware of the level of toxicity that they were spreading in the environment.
Is 3M a Good Stock to Buy?
Wall Street is bearish on 3M stock, with a Moderate Sell rating based on eight Holds and five Sells. The average price target of $124.69 indicates a 3.45% downside risk over the next year.
Moreover, the lawsuit raises the possibility of a potential ban on certain products manufactured by 3M. This is an added risk to the stock.
Will DD Stock Go Up?
Analysts on Wall Street expect DuPont’s stock price to increase by around 10.12% over the next 12 months, reaching $76.70. In contrast to 3M, DuPont stock enjoys a Strong Buy consensus rating on Wall Street, based on nine Buys and one Hold.
