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.
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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?
The challenging macro backdrop will likely hurt 3M’s financials. On April 25, RBC Capital analyst Deane Dray raised the company’s price target to $95 from $89, reflecting a Q1 earnings beat.
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.
