Bank Of America Securities analyst Andrew Obin maintained a Buy rating on 3M Company (NYSE:MMM) with a price forecast of $170 following first-quarter results reported on Tuesday.

The company reported net sales of $5.95 billion, a decline of 1.0% year-over-year (Y/Y), beating the consensus of $5.781 billion, and adjusted EPS was $1.88, up 10% Y/Y, beating the consensus of $1.77.

3M sees 2025 adjusted EPS of $7.60-$7.90 (vs. cons. $7.75) and additional tariff sensitivity losses to 20 to 40 cents per share.

The analyst writes that the company’s results beat expectations, with strength noted in electrical markets, industrial adhesives and tapes (Safety & Industrials), aerospace (Transportation & Electronics), and consumer safety and well-being (Consumer).

The analyst notes that 3M estimates a total annualized tariff impact of $850 million. Still, due to the April start date and their 90-day inventory cycle, the company expects a $400 million effect before offsets in 2025.

The analyst believes the impact of Chinese import tariffs is more heavily concentrated in its consumer business.

Obin reiterated the 2025 EPS estimate at $7.60, factoring in a 40-cent headwind from tariffs (an increased $0.20 impact).

This negative effect is negated by an additional 16-cent benefit from foreign exchange (as FX assumptions are less unfavorable than 3M’s guidance), and the 10-cent operational beat in the first quarter adds the analyst.

The analyst projects a 6-cent headwind in the second through fourth quarters due to the timing of interest expenses.

Investors can gain exposure to GLW via ProShares Smart Materials ETF (NYSE:TINT) and Invesco Exchange-Traded Fund Trust II Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV).

Price Action: 3M shares are up 1.89% at $138.63 at the last check Thursday.

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