3M drops after BofA downgrades as Democratic Senate poses business risk

Minco Capital

07/01/2021 19:37

** U.S. industrial conglomerate's shares  MMM.N  fall as
much as 4.6% to near two-month low of $166.16; Stock set to post
biggest one-day pct loss in more than three months
    ** Bank of America Global Research downgrades MMM to
"underperform" from "neutral", cuts PT to $170 from $200, saying
Democrats taking control of the U.S. Senate could mean tighter
environmental regulation
    ** BofA says a Democratic Senate could result in strict
legislation on polyfluoroalkyl substances (PFAS), a family of
chemicals which have been linked to health problems and were
formerly produced by MMM for use in cookware and other consumer
products
    ** 3M has said it faces several lawsuits related to the
production of the chemicals and could face billions of dollars
in potential fines
    ** "Republican control of the relevant Senate committee has
prevented significant PFAS legislation from being passed,"
brokerage says, adding that the "Blue Wave accelerates PFAS
risks"
    ** Of 19 brokerages, 12 rate the stock "hold", four "sell"
or lower and three "buy"; median PT $182 - Refinitiv data
    ** MMM has fallen over 2% in the past 12 months

 (Reporting by Ankit Ajmera in Bengaluru)
 ((Ankit.Ajmera@thomsonreuters.com))