3M (MMM) is set to regain market share as indicated by "improving on-time/in-full performance, order trends and organic growth outlook," UBS said in a note Tuesday.

The analysts said that while the company maintained its 2025 earnings per share guidance of $7.60 to $7.90, they believe the latest updates suggest there's more potential upside than previously expected. The company's guidance now includes about 10 cents of "contingency" or cushion that wasn't previously built in. There is also roughly 15 cents of additional upside from current foreign exchange rates; what was a 15-cent FX headwind to 2025 EPS could be fully offset by recent post-"Liberation Day" currency moves, the analysts added.

The analysts said there was minimal pre-buying ahead of expected tariffs, only about $10 million on a quarterly revenue base of roughly $6 billion. Current tariff policies could pose a $400 million hit to 2025 earnings, and another $450 million in 2026. However, management expects to offset at least half of this through pricing and cost-cutting. Most of the profit and loss impact won't show up until H2, providing time for potential de-escalation in trade tensions.

"The bottom line is our positive thesis on MMM shares remains fully intact, and

we see the combination of revenue and cost opportunity driving further upside in

shares. Maintain Buy and Top Pick across our entire coverage universe," the analysts said, adding that they are raising their 2025 EPS estimate to $8.00, up from $7.93 and above the current Wall Street consensus of $7.73. UBS is keeping its $184 price target on the stock.

Price: 138.64, Change: +2.31, Percent Change: +1.69