Science-based technology group 3M Company (MMM), whose huge range of over 60,000 products takes in everything from colorful note pads to car wheel weighing systems and earmuffs, has received a favorable hearing from analysts after posting better-than-expected fourth-quarter results and issued a solid outlook for 2025.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Analysts from JP Morgan raised the company’s price target to $165 from $162 and retained an Overweight rating on the stock. The new price target implies an upside of 11% from MMM’s closing price of $149.12 on Wednesday. Bank of America (BofA) also raised its price target for 3M stock to $175 from $160 and kept a Buy rating.
3M Delivers Upbeat Q4 Earnings and Outlook
In its results for Q4 2024, 3M revealed adjusted sales of $5.8 billion, with organic growth up 2.1% year-over-year. Meanwhile, full-year sales of $23.6 billion reflected a 1.2% organic growth. Its Safety & Industrial sector was the biggest sales driver, thanks to the demand for roofing granules, industrial adhesives, and tape.
However, EPS looked less secure in the fourth quarter, down 2% on a year-on-year basis to $1.68. Nevertheless, it exceeded analysts’ consensus estimate of $1.66. For the full year 2024, EPS grew 21% to $7.70, with the company highlighting improved productivity and inventory. Meanwhile, the company returned $1.1 billion of cash to shareholders during the quarter, bringing the annual total to $3.8 billion.
Looking ahead, 3M issued guidance that organic sales would grow between 2% and 3% in 2025 and that EPS is expected between $7.60 and $7.90. The company expects this year’s performance to be boosted by consumer electronics demand, but cautioned that the macro environment remained “uneven” and consumer discretionary spending was “soft.”
Analysts Weigh in on 3M’s Performance
JP Morgan acknowledged that the quarter was a mixed one for 3M operationally, but it had managed through with “less volatility than many had been expecting.” However, it was the company’s forward outlook that seemed to excite the investment firm.
Meanwhile, BofA analyst Andrew Obin believes that near-term acceleration in short-cycle industrial activity could provide “another source of earnings upside over the next several quarters.” Likewise, Deutsche Bank raised 3M’s price target to $170 from $153 and maintained a Buy rating.
Further, Wells Fargo upgraded the stock to Buy from Hold and increased the price target to $170 from $140, citing improving margins, encouraging outlook, and share buybacks. However, analysts at Mizuho maintained a Hold rating and an unchanged price target of $146.
Is MMM a Good Buy?
On TipRanks, MMM has a Moderate Buy consensus based on five Buys, three Holds, and two Sell ratings. The highest price target is $184. MMM stock’s consensus price target of $150.44 indicates that the stock is fully priced at current levels.
