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3M Lands a New Reprieve Over Forever Chemicals
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3M Lands a New Reprieve Over Forever Chemicals

The issue of “forever chemicals” hasn’t come up much lately. That’s given 3M (NYSE:MMM) a bit of breathing room. And now, it’s landed a bit more breathing room thanks to a judge’s delay in the case against 3M. Investors didn’t take the news well, however, and 3M is down significantly in Monday afternoon’s trading.

Perhaps the problem for shareholders is why 3M got its delay, to begin with. The judge in the case offered the delay so that 3M could negotiate a settlement. A full trial was set to start today, but with the delay, the chances of a trial ever starting up seem unlikely. The trial—between 3M and the city of Stuart in Florida—was set to decide if 3M had contaminated the city’s water supply with its “forever chemicals,” which are chemicals that never break down and include things like per- and poly-fluoroalkyl substances, or PFAS.

The city of Stuart sought over $100 million in the suit, which it would use to treat local soil and groundwater that was impacted by the “forever chemicals” in question. While it’s unclear if Stuart will end up getting the whole amount, a settlement would likely have to come pretty close in order to keep this out of the court system. But 3M is clearly in a check-writing mood; just last Friday, a report from Bloomberg News noted that 3M had already set up a $10 billion deal with a set of towns and cities regarding forever chemicals. An extra $100 million for Stuart might slot in readily.

Meanwhile, analysts aren’t exactly on 3M’s side either. With six Hold ratings and four Sell, 3M stock is considered a Moderate Sell. Further, with an average price target of $107.30, 3M stock offers a minor 8.65% upside potential.

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