3M Stock Drops From 2-Year High on Analyst Warning

The shares of 3M Co (NYSE:MMM) are down 0.4% at $196.98 this morning, after Deutsche Bank called the blue chip a "catalyst call" sell. The analyst cited the stock's seemingly unprecedented outperformance in the weeks leading up to its earnings, of which Deutsche Bank predicts will fall short of expectations. 

The stock is, in fact, in "overbought" territory, with a relative strength index (RSI) sitting at 70. Plus, during yesterday's session, MMM notched a fresh two-year high, though it looks to have lost steam just below the $200 level, which is home to 3M stock's May 2019 post-bear gap peak. The stock is up 13.2% in 2021. 

Deutsche Bank's caution isn't  all that unusual, considering just two of the nine in coverage call MMM a "strong buy," compared to five "holds," and two "sell" or worse ratings. The 12-month consensus price target of $189.94, meanwhile, is a 4% discount to last night's close. 

Option traders have been a bit more bullish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MMM sports a 50-day call/put volume ratio of 3.46, which stands higher than 68% of readings in the past 12 months. In other words, long calls are being picked up at a slightly quicker-than-usual clip of late.