Morgan Stanley Downgrades This Multinational Conglomerate - Read Why - 3M (NYSE:MMM)

Morgan Stanley analyst Joshua Pokrzywinski downgraded 3M Co 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.

Morgan Stanley Downgrades This Multinational Conglomerate - Read Why