Current trend

Shares of 3M Co., an American diversified innovation and manufacturing company, are trading in a corrective trend around the 108.00 mark.

Analysts at Barclays Bank upgraded the emitter's stock rating from "Underweight" to "Equal-Weight", and the target price from 98.00 to 107.00. According to experts, the company has recently reduced the legal burden, in particular, by winning a long-running lawsuit concerning violations of the storage conditions of "eternal chemicals" by one of the subsidiaries of 3M Co. It is also expected that the corporation will show a significant increase in operating margin in 2024–2025.

The financial report for Q4 2023 will be published on January 23: according to preliminary estimates, revenue may amount to 7.68 billion dollars, slightly below 8.02 billion dollars for the previous period, and earnings per share (EPS) is expected at 2.31 dollars, which is also inferior to 2.68 dollars in Q3.

The last dividend payment took place on December 12, when shareholders received 1.5 dollars per share, which corresponds to a yield of 6.20% for the quarter. The date of the new payment has not yet been determined, but it can be indexed to 1.51–1.52 dollars per share.

Support and resistance

On the D1 chart, the instrument forms a local ascending corridor with borders of 110.00–106.00.

Technical indicators demonstrate a stable buy signal, continuing to strengthen it: the AO histogram forms new ascending bars, and the fast EMAs of the Alligator indicator confidently hold above the signal line.

Support levels: 106.50, 101.00.

Resistance levels: 110.00, 116.00.

Trading tips

If the asset continues to grow and the price strengthens above the local resistance level at 110.00, one can open short positions with the target at 116.00 and stop-loss at 108.00. Implementation time: 7 days and more.

If the asset continues to decline, and the price consolidates below the support level of 106.50, short positions with the target at 101.00 and stop-loss at 108.00 may be opened.