3M (NYSE:MMM) announced the departure of Michael Vale, its group president and chief business and country officer. The company removed Vale due to inappropriate personal conduct and a breach of company policy. Meanwhile, Wall Street analysts maintain a bearish outlook for 3M stock.
The company manufactures and sells industrial, safety, and consumer goods globally.
Shares of 3M have underperformed the broader market in 2023. It has declined by over 15% year-to-date compared to a roughly 8% gain in the S&P 500 Index (SPX).
Weak sales guidance and pressure on margins have weighed on 3M stock. Management expects 2023 sales to decline by 2-6%. Meanwhile, lower organic sales, an increase in investments, and higher non-operating interest expenses could hurt its profitability.
3M expects its earnings to be in the range of $8.50 to $9.00 in 2023, down from $9.88 in 2022.
What’s the Prediction for 3M Stock?
However, Dray reiterated a Sell rating on 3M stock due to the weak macro environment, inventory de-stocking in the consumer market, and supply chain issues.
Including Dray, five analysts have recommended a Sell on MMM stock. Meanwhile, four analysts have a Hold. Overall, 3M stock sports a Moderate Sell rating consensus rating.
Further, analysts’ average price target of $109.22 implies 8.69% upside potential for the stock from current levels.