Morgan Stanley has revised its price target for 3M Co. (MMM, Financial), lowering it from $130 to $125 while maintaining an Underweight rating on the stock. This adjustment reflects concerns regarding the company's future growth trajectory.
Morgan Stanley analysts highlight that while 3M reported robust order activity in the first quarter, this was largely driven by demand stability rather than long-term growth prospects. They suggest that the increase in organic growth observed over the past two quarters largely stemmed from a short-term boost due to tariff-related demand rather than sustainable market factors.
This assessment differs from 3M's management forecasts, which anticipate a growth acceleration in the upcoming quarters. The divergence between Morgan Stanley's outlook and the company's guidance signals potential challenges for 3M as it strives to meet consensus expectations.
