3M's New, Moatworthy Product Initiatives Should Help Improve Top-Line Growth

Estimating 3M’s legal liabilities from producing per- and polyfluoroalkyl substances is highly uncertain. While some believe these liabilities exceed the firm’s market capitalization, we think 3M’s settlements and the Solventum spinoff substantially reduce its risk. 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.