Citi ups 3M target, opens ‘positive Catalyst Watch’

Citi raised the firm’s price target on 3M to $111 from $97 and keeps a Neutral rating on the shares. Despite mixed macro indicators and potential incremental headwinds associated with elevated interest rates, the analyst still sees favorable secular trends and fiscal policy for U.S. industrials heading into 2024. Fiscal policy is supportive of growth potential for industrials, says Citi, which favors exposure to drivers such as bottoming short-cycle end markets, quality with good visibility, and self-help. Channel de-stock in some shorter-cycle end markets should largely run its course over the next several quarters and support sales growth aligned with end-market demand, the firm adds. Quanta Services (PWR) is Citi’s overall top pick in the sector. It also opened a “90-day positive Catalyst Watch” on 3M. It expects 3M’s consumer and electronics business to begin to inflect over the course of 2024 as destocking runs its course