3M Upgraded by Bernstein on R&D Overhaul, Target Raised to $171

Bernstein SocGen Group upgraded 3M Co. (NYSE: MMM) to Market Perform from Underperform after a meeting with management. The firm raised its price target to $171 from $145.

Analysts said 3M has structurally improved its research and development operations. They pointed to a factory-like approach to product commercialization that focuses on returns from capital deployment.

Bernstein now forecasts organic growth of 3.5% to 4%, up from about 3%. The firm expects 3M to achieve operating margins of approximately 25% in 2026.

The positive outlook reflects Bernstein’s view that PFAS replacement and the capital drain from healthcare no longer significantly hamper R&D effectiveness. Separately, Wells Fargo initiated coverage of 3M with an Equal Weight rating and a $195 price target.