Benzinga | Jan 5, 2022 07:50AM EST

RBC Capital Downgrades 3M, Cuts Price Target By 16%

* RBC Capital analyst Deane Dray downgraded 3M Co (NYSE:MMM) to Underperform from Sector Perform and lowered the price target to $166 (a downside of 7.9%) from $199.

* The analyst believes 3M is entering 2022 with a litany of operating and legal challenges, especially PFAS, which is likely to result in this high-quality Prime further underperforming.

* Dray further adds that ongoing inflation and supply chain pressures have exposed fundamental weaknesses in the company's price/cost actions that are unlikely to be remedied soon.

* Recently, Barclays analyst Julian Mitchell lowered the price target to $177 (a downside of 1.79%) from $182 and kept an Underweight rating on the shares.

* Price Action: MMM shares are trading lower by 1.15% at $178.16 during the premarket session on Wednesday.