- Morgan Stanley analyst Joshua Pokrzywinski downgraded 3M Co (NYSE:MMM) to Underweight from Equal Weight and lowered the price target to $150 (a downside of 3.7%), from $185.
- Pokrzywinski says while 3M's fundamentals are improving, growth is still insufficient when weighed against potential liabilities around PFAS and ear protection.
- Based on judgments thus far, the analyst mentions that his base case for Combat Arms ear protection liabilities is $14 billion, and the bear case scenario is $53 billion. The analyst notes even a small percentage of total cases paying out at the low end of judgments thus far could be in the $5 billion-$10 billion range.
- Meanwhile, his estimate of the market-implied liability since PFAS awareness has increased ranged from $20 billion-$40 billion, Pokrzywinski notes.
- Related: Read How Analysts Reacted To 3M's FY22 Outlook
- Price Action: MMM shares are trading lower by 2.53% at $151.70 during the premarket session on Thursday.
