“Forever” just doesn’t mean what it used to. Just ask home goods and chemical giant 3M (NYSE:MMM), who announced that it would stop making so-called “forever chemicals” starting in 2025. The news didn’t sit well with the market, as 3M is down slightly in Tuesday afternoon trading.
Several chemicals qualify as “forever chemicals.” Otherwise known as perfluoroalkyl and polyfluoroalkyl substances (PFAS), these chemicals take quite a long time to break down in the environment. 3M used such chemicals in a wide range of products; sufficiently wide, in fact, that the estimated cost to the company to ditch PFAS chemicals is between $1.3 billion and $2.3 billion.
Yet, in this case, it was likely a good idea. PFAS have been found in everything from drinking water to food. Worse, they’re appearing in concentrations reportedly considered dangerous. While the loss of PFAS will be substantial, thanks to their sheer range of uses, the overall impact won’t be that substantial. PFAS make up part of everything from water and oil-resistant coatings to products designed to repel such fluids. Yet despite their sheer utility, PFAS are only a “small portion” of 3M’s revenue.
Overall, analyst consensus considers 3M a Moderate Sell. It has twice as many Hold recommendations as Sells and no Buy recommendations at all. With an average price target of $123.78, the company has a meager upside potential of just 1.87%.
