3M (MMM) could deliver faster growth, higher earnings and stronger margins over the next several years as new products, cost savings and improving demand support results, UBS said in a note emailed Wednesday.

UBS raised its 2027 earnings estimate to $10.46 per share, about 10% above the market consensus, based on expected organic sales growth of 5% and continued productivity gains, and expects 3M to generate about $800 million more operating profit in 2027, helped by higher sales and $600 million in net productivity, partly offset by increased investment and stranded costs.

3M's product pipeline should become a larger growth driver as the company works toward launching more than 1,000 products by 2027, including more than 350 this year, which should support mid-single-digit growth over time because new launches usually take two to three years to reach full sales potential, UBS said.

The investment firm also sees possible upside to 3M's 2026 outlook, saying the company's guidance appears cautious after strong H1 earnings, continued order growth and healthy demand in industrial, safety and data-center markets.

UBS kept the company's buy rating and raised the price target to $218 from $190.

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