MMM Is Finally Compelling, Warranting An Upgrade To Buy

Summary:

• MMM’s strategic focus on high-growth markets and improved balance sheet health justify an upgrade to Buy, thanks to the recent sideways trading.
• The company’s raised FY2024 guidance and potential to outperform these numbers based on YTD outperformance, underscore a promising growth trajectory.
• MMM’s valuations appear compelling with a FWD P/E of 17.71x, with an upward re-rating nearer to its peers potentially triggering a double-digit capital appreciation.
• Ongoing R&D efforts, automotive OEM recovery, and ongoing aerospace investments bolster its growth outlook, with management likely to offer robust FY2025 guidance in upcoming earnings calls.
• This is on top of the moderating short interest and the stock’s established H2’24 support levels at $125s, with MMM likely to breakout from the 6M sideways trading in the near-term.

MMM Is Finally Compelling, Warranting An Upgrade To Buy

We previously covered 3M (NYSE:MMM) in August 2024, discussing its recent stock price outperformance attributed to the improved balance sheet, leaner business, and focus on higher margin

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