3M upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst Stephen Tusa upgraded 3M to Overweight from Neutral with a price target of $111, up from $110. The analyst cites the combination of an attractive valuation, an increasingly cleaned up balance sheet, and the dividend cut catalyst behind the company for the upgrade. The firm believes 3M will see a turn in earnings momentum on a bottom in electronics, with better visibility on remaining company fundamentals. The price target assumes the core business trades at a 15% discount to the sector, while embedding an extra liability burden that is the same size as the recent PFAS agreement, notes JPMorgan. It sees the new CEO “setting an upside pathway at some stage,” perhaps at an investor meeting over the next nine months, crystalizing the bull case.