Mizuho has revised its target price for 3M Co. (MMM, Financial), lowering it from $146 to $141 while maintaining a Neutral rating on the stock. This adjustment comes as the firm anticipates a slowdown in near-term demand and considers the potential impact of tariffs on the company’s financial performance as earnings season approaches.
The firm's analysis indicates that while first-quarter performance aligns with expectations, investors are largely ignoring these results due to recent economic developments. Particular concern has been raised about the escalation of tariffs, notably those involving China, which are expected to significantly affect 3M’s operations.
To counteract these challenges, companies have started to increase their prices. However, Mizuho foresees potential revenue loss and other headwinds that could not be entirely mitigated, suggesting that some of these challenges may persist despite proactive measures.
