RBC raises 3M stock price target on Amazon datacenter deal progress

RBC Capital has increased its price target for 3M Co. (NYSE:MMM) to $135 from $132, keeping an Underperform rating. The target is still below the current stock price of $169.05 and the analyst consensus high target of $218. The upgrade comes after a strong third-quarter 2026 operating beat driven by growth in the Safety & Industrial segment.

3M also announced a deal with Amazon granting a warrant for 3.2 million shares, which will vest upon $6 billion in cumulative datacenter purchases over seven years. The company's existing datacenter revenue from all customers stands at around $700 million. RBC Capital also mentioned a partnership with GSEO, involving a 4.7% equity stake, to boost production of its EBO product line, which currently generates approximately $45 million in revenue.

However, potential multi-billion-dollar PFAS liabilities remain unresolved. While 3M reported adjusted earnings of $2.50 per share for Q3 2026, surpassing Wall Street's estimate of $2.39, revenue for the quarter was $6.6 billion, slightly below the forecasted $6.61 billion. Despite the minor shortfall, the company's organic sales grew by 3.3%, and its operating margin expanded to 26.2%.

Other analysts, such as JPMorgan and Jefferies, have also provided their opinions on the stock, with JPMorgan raising its target to $191 and maintaining an Overweight rating, while Jefferies lowered its target to $186 and kept a Hold rating.