3M upgraded as analyst sees concerns over Trump policies as overdone
Shares of 3M Co. gained 0.3% in morning trade Wednesday, after RBC Capital said it was no longer bearish on the industrial conglomerate, saying any weakness on concerns over President-elect Donald Trump's policies is overdone. Analyst Deane Dray upgraded 3M to sector perform, after being at underperform for the last eight months. He raised his stock price target to $171, which is now just 0.8% below current levels, from $155. Dray said that with its global revenue mix and health care exposures, the maker of Scotch tape and Post-it notes could still be hurt by new Trump initiatives, but the improved macro environment and recent underperformance by the stock "should limit relative downside" from current levels. Only about 40% of 3M's revenue is from the U.S., according to FactSet. The stock has now gained 0.8% since the election, while the Dow Jones Industrial Average has run up 5.1%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.