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3M Company
MMM Details
3M Company (NYSE: MMM) is a diversified technology company. It is a manufacturer as well as marketer of a variety of products and services. The segments include Safety and Industrial, Transportation and Electronics, and Consumer.
Financial Results
Key Update:
The company announced the resignation of Monish Patolawala, President and Chief Financial Officer, effective July 31, 2024, in order to pursue another opportunity.
Outlook
On March 26, the company announced that, as of the final registration date for the Combat Arms Earplug settlement agreement, over 99% of claimants are participating in the settlement. MMM would be paying a total amount of up to $6.0 Bn, between 2023 and 2029, in order to resolve the litigation, provided all participation thresholds are met. This reflects the total pre-tax present value of $5.3 Bn.
Key Risks
The company’s results are impacted by the effects of, and changes in, worldwide economic, political, regulatory, international trade, geopolitical as well as other external conditions.
Fundamental Valuation
P/E Based Relative Valuation
Stock Recommendation
Over the last three months, the stock has given a return of ~12.5%. The stock has made a 52-week low and high of USD 71.35 and USD 106.040, respectively. The company’s performance is exposed to the risks related to the global slowdown as well as geopolitical tensions. Also, the company’s results are impacted by competitive conditions and customer preferences.
Also, MMM is subject to risks related to its Aearo Entities and CAE Settlement. Any sort of changes in tax rates, laws, or regulations could adversely impact its financial results. Therefore, investors should exit this stock.
Considering the current trading levels, risks associated, and volatile market conditions on the back of higher interest rates, an ‘Sell’ rating is assigned to the “MMM” at the current market price of USD 104.90 as of July 15, 2024 (7:25 am PDT).
Technical Overview:
Daily Price Chart
MMM Daily Technical Chart, Data Source: REFINITIV
Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for share price chart and stock valuation is based on July 15, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.
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