3M Co

MMM: XNYS (USA)
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3M's Innovation Efforts Are Paying Off as New Product Vitality Index Hits Multiyear High

Business Strategy and Outlook

Estimating 3M's legal liabilities from producing per- and polyfluoroalkyl substances is a highly uncertain exercise. While some believe these liabilities total greater than the firm's market capitalization, we think 3M's settlements and the spinoff of Solventum reduce 3M's risks substantially. We remain concerned about 3M's incremental PFAS-related liabilities, but we think they're manageable in their current state. 3M continues to work through PFAS-related claims in individual states in the US, with a handful resolved thus far and many more on the docket.

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