3M (MMM) saw a significant increase in its stock price on Friday, becoming the top-performing stock on the Dow Jones Industrial Average. This surge came after Bank of America (BofA) upgraded the stock, expressing confidence in the company’s new CEO, Bill Brown.
BofA raised its rating on 3M from “neutral” to “buy” and raised the stock’s price target from $105 to $120. The analysts believe that under Brown’s leadership, the company will focus on growth and operational efficiency.
Brown took over as CEO last month and is already making moves to improve the company’s operations. 3M has recently settled major lawsuits, including those related to PFAS chemicals and military earplugs. The company is also spinning off its health-care unit.
According to BofA analysts, investors are likely to pay more attention to 3M’s operational improvements, potential growth opportunities, and its undervalued stock. Brown has emphasized innovation-driven organic growth and operational efficiency as his top priorities.
3M shares closed at $100.86 on Friday, marking a 2.7% increase and contributing to a total gain of over 10% since the beginning of the year. Brown’s focus on growth and operational efficiency seems to be resonating positively with investors, driving the stock’s upward trajectory.