3M: Re-Rating Likely As Litigation Uncertainty Fades And End-Markets Recover

Jul. 29, 2022 12:45 AM ET3M Company (MMM) StockJNJ34 Comments
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GS Analytics
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Summary

  • In the near term, the company should benefit from favorable trends in certain end-markets and pricing actions.
  • The company is spinning off its healthcare business and is taking a new approach to tackle the Combat Arms Earplug litigation.
  • The stock is trading at an attractive valuation.
Prague, Czech republic - May 22, 2017: 3M company logo on headquarters building

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Investment Thesis

3M’s (NYSE:MMM) sales should benefit from the re-opening of cities in China, easing comps in automotive business, improving elective healthcare volumes, strong demand for semiconductor chips, and pricing actions. The company's margins should benefit from the pricing actions and sales leverage. 3M also

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