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Wells Fargo Does Not See Much Upside Potential In These Giant Industrial Conglomerates - Read Why

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Wells Fargo analyst Joseph O'Dea initiated coverage on General Electric Co (NYSE: GE) and 3M Co (NYSE: MMM).

General Electric was initiated with an Equal Weight rating and a price target of 7, implying an upside of 1.32%; the analyst says the shares are "fairly valued" at current levels.

O'Dea feels that GE's management has done a "good job of taking a complicated set of considerations and distilling them down to a single, primary focal point: high-single-digit FCF margins in 2023+."

3M was initiated with an Equal Weight and a price target of 9, implying an upside of 0.67%. The analyst said that PFAS litigation is a "substantial" overhang and one that he doesn't see being resolved anytime soon.

Price Action: GE shares are trading lower by 0.15% at $105.35, while MMM is higher by 0.40% at $178.52 during the premarket session on Friday.

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