Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 2 May, 24 | MMM | Buy | USD 96.51 | USD 106.5 | USD 115.5 | 76 days | 19.7% |
Data Powered by EOD Historical Data (“EODHD”).
3M Company provides diversified technology services in the United States and internationally. The company operates through four segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. The Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications; autobody repair solutions; closure systems for personal hygiene products, masking, and packaging materials; electrical products and materials for construction and maintenance, power distribution, and electrical original equipment manufacturers; structural adhesives and tapes; respiratory, hearing, eye, and fall protection solutions; and natural and color-coated mineral granules for shingles. The Transportation and Electronics segment provides ceramic solutions; attachment tapes, films, sound, and temperature management for transportation vehicles; premium large format graphic films for advertising and fleet signage; light management films and electronics assembly solutions; packaging and interconnection solutions; and reflective signage for highway, and vehicle safety. The Healthcare segment offers health care procedure coding and reimbursement software; skin, wound care, and infection prevention products and solutions; dentistry and orthodontia solutions; and filtration and purification systems. The Consumer segment provides consumer bandages, braces, supports, and consumer respirators; cleaning products for the home; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products. It offers its products through e-commerce and traditional wholesalers, retailers, jobbers, distributors, and dealers. 3M Company was founded in 1902 and is headquartered in St. Paul, Minnesota.
Higher Gross Margin: 43.8% in FY 2023 vs 32.7% Industry Median
Increased EBITDA Margin: 27% in FY 2023 vs 18.9% Industry Median
Negative Operating Margins: -27.9% in FY 2023
Negative Net Margin: -21.4% in FY 2023
Geopolitical Tensions, Global Slowdown etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 96.51 | 89.0 | 106.5 | 115.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financials: MMM delivered results which were better than its expectations as MMM retuned to organic growth as well as achieved double-digit adjusted earnings growth.
Technical: MMM has witnessed a rise of about 8.82% in 1 month.
Outlook: For FY24, MMM has projected total sales growth of between (0.25%) to +1.75% and adjusted earnings per share of between USD 6.80 to USD 7.30.
Given the aforementioned factors, a "Buy" recommendation has been assigned on the stock at the closing markwet price of USD 96.51 as on 30 April 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Conglomerates
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| MMM 3M Company |
1.57 1.25% | 127.10 | - | 10.81 | 1.75 | 12.26 | 2.10 | -9.1852 |
| HON Honeywell International Inc |
0.32 0.14% | 227.18 | 23.08 | 19.72 | 3.48 | 8.06 | 3.85 | 15.52 |
| MSBHF Mitsubishi Corp. |
-0.12 0.75% | 15.88 | 10.00 | - | 0.0032 | 1.08 | 0.0046 | 0.05 |
| HTHIY Hitachi Ltd ADR |
0.44 0.88% | 50.65 | 13.55 | 10.63 | 0.0062 | 1.66 | 0.0069 | 0.05 |
| HTHIF Hitachi Ltd |
- -% | 24.21 | 13.31 | 10.54 | 0.0062 | 1.66 | 0.0069 | 0.05 |
Data Powered by EOD Historical Data (“EODHD”).
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and target levels is April 30, 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.
Note 4: The report publishing date is as per the Pacific Time Zone.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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