I Applaud J.P. Morgan Analyst For Downgrading 3M

Summary

  • JP Morgan’s analyst downgraded 3M to “Sell’ In September 2017. Some investors voiced their displeasure on blogs and message boards.
  • In a January 2017 post I indicated I thought MMM was expensive. The price has just ratcheted up subsequent to that post.
  • I am cautiously optimistic JP Morgan’s analyst’s call will be correct and the stock price will drop.

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3M Stock Analysis – This Behemoth Belongs in Everyone’s Portfolio

Summary

  • This 3M stock analysis is based on Q4 and FY 2016 results and outlook for fiscal 2017 released January 24, 2017.
  • 3M reported strong result in FY2016 thus enabling it to return $6.431B to shareholders via share repurchases or dividends.
  • 3M has been taking advantage of favorable interest rates and has increased LTD from $4.3B in FY2013 to over $11B as at end of Q3 2016.
  • 2017 projections include EPS range of $8.45 to $8.80 (a 4% – 8% increase) and FCF conversion range of 95% to 105%.
  • I would be prepared to acquire additional 3M shares below $164.

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