3M Upgraded to Neutral at UBS on Reflective Legal Liability

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3M($NYSE:MMM) was recently upgraded to Neutral from Sell at UBS, on the basis that the legal liability the company is facing is already reflected in its share price. The bank lowered its EPS estimate for the third quarter to $2.60 from $2.74, compared with the consensus of $2.68. Investors have attempted to estimate the possible cost of legal liabilities for 3M, the target of thousands of lawsuits claiming the company is responsible for hearing damage linked to its military-grade earplugs. At this stage it is difficult to say what the long-term impact on 3M’s market and earnings will be, but the short-term effect appears to be reflected in the share price.

Market Price

On Friday, 3M stock opened at $121.3 and closed at $123.1, up by 3.2% from prior closing price of 119.3. This upgrade comes after UBS analysts reflected on 3M’s legal liability in light of recent events. Despite the company’s challenges, UBS believes 3M is still a strong contender in the marketplace. They have a positive outlook for the company and believe its stock is undervalued.

VI Analysis

3M is a company with strong fundamentals that reflect its long term potential. However, according to the VI Risk Rating, 3M is a medium risk investment in terms of financial and business aspects. This means that there are some potential risks associated with investing in 3M. However, these risks can be mitigated by looking at the company’s financials and business operations. By doing so, investors can make an informed decision about whether or not to invest in 3M.

Summary

The stock price moved up the same day. 3M is a diversified technology company with a history of innovation. It has a strong portfolio of products and a global reach. UBS cited 3M’s “reflective legal liability” as the reason for the upgrade. The investment bank said that the company’s recent legal troubles are “overblown” and that the stock is undervalued. 3M has been facing lawsuits over its allegedly defective earplugs, which were used by troops in Iraq and Afghanistan. 3M is a diversified company with a long history of innovation. It is worth considering as an investment.