3M stock rose early Friday after catching an upgrade. It isn't an upgrade to Buy, though.

Bernstein analyst Varun Govindaraj upgraded shares to the equivalent of Hold from Sell. His price target went to $171 from $145.

3M stock was up 0.6% in early trading at $168.85, while the S&P 500 and Dow Jones Industrial Average were up 0.3% and 0.2%, respectively.

"We are upgrading 3M to Market Perform based on a refreshed understanding of the transformation," wrote Govindaraj. "Four factors drive our decision," including an improving economy, margin expansion opportunity, improved R&D spending, and reduced risk tied to 3M's manufacturing of so-called PFAS forever chemicals.

An improving economy is a tailwind for any business. The Institute for Supply Management Purchasing Managers' Index, or ISM PMI, has been above 50, a level that indicates growth, for several months after several years below that level.

Internally, things are improving, too.

CEO Bill Burns took over in May 2024 and has focused on operational efficiency and product innovation. Some green shoots of improvement are emerging.

Comparable sales growth is expected to be 3.5% in 2026, up from 1.5% in 2025 and 1.2% in 2024. As for profit margins, they have increased a couple of percentage points over the past two years. Analysts expect a couple more points of improvement over the next two years.

PFAS liabilities have been an overhang for years, but a roughly $12.5 billion settlement in 2023 gave investors some certainty over the size of potential payments.

Coming into Friday's trading, 3M stock was up about 5% year to date and up 9% over the past 12 months. Shares haven't done much lately, but since Burns took over 3M stock has gained about 70%, 17 percentage points better than the S&P 500.

Overall, Wall Street remains a little skeptical. Only 43% of analysts covering 3M stock rate shares Buy. The average Buy-rating ratio for S&P 500 stocks typically ranges from 55% to 60%.

At least there is one less call to sell the stock.