Here's What 3M's Big News Means to Investors
At a glance, it's understandable that 3M's (NYSE: MMM) recent investor day didn't produce a significant move in the stock price. The industrial conglomerate's three-year targets were solid enough but not sufficiently inspiring to encourage investors to significantly upgrade medium-term expectations.However, based on the presentations, there's a strong case for 3M being able to deliver good returns in the coming years, with more to come over the long term. That's likely to suit many investors, and it's why the stock remains attractive to buy. Here's the lowdown.The financial targets laid out by management at the event are shown in the table below. Prospects for earnings growth are clearly coming not from organic sales but from expectations for higher margins, with management aiming to hit a 25% operating margin by 2027. Continue reading
At a glance, it's understandable that 3M's (NYSE: MMM) recent investor day didn't produce a significant move in the stock price. The industrial conglomerate's three-year targets were solid enough but not sufficiently inspiring to encourage investors to significantly upgrade medium-term expectations.
However, based on the presentations, there's a strong case for 3M being able to deliver good returns in the coming years, with more to come over the long term. That's likely to suit many investors, and it's why the stock remains attractive to buy. Here's the lowdown.
The financial targets laid out by management at the event are shown in the table below. Prospects for earnings growth are clearly coming not from organic sales but from expectations for higher margins, with management aiming to hit a 25% operating margin by 2027.
