3M Company (MMM) is better positioned to deliver positive earnings revisions in 2026 compared to other short-cycle industrial companies, Morgan Stanley said in a note Wednesday.
"We see MMM relatively well positioned vs US short-cycle industrials to drive positive revisions," the note said.
The company's consumer segment improved double digits in December, which positions it for a return to positive organic growth in 1H 2026. Yet the stock has derated to peers despite progress in cost actions and operational fixes, the brokerage said.
The current valuation, combined with an achievable growth bar, makes the company's risk-reward look better, the note said.
Morgan Stanley maintained its equal-weight rating on the stock and increased its price target to $165 from $160.
Price: 158.17, Change: +2.05, Percent Change: +1.31
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