3M Co. (NYSE: MMM), which reported market-beating results for the quarter’s fourth on Tuesday, boosted its stock by 4%.
The shares of this multinational conglomerate nearly doubled in the last 11 months.
Jim Cramer, the famous investor and 3M shareholder, remains optimistic about future gains in this stock.
He said on CNBC’s “Squawk On The Street” this morning, “This is an investment. Even here [after a massive rally], I think it’s worth buying.”
A 1.90% yield on 3M shares makes them even more attractive to buy at the time of writing.
Cramer is confident in 3M CEO
3M forecasts that its revenue will grow up to 1,5% by 2025. Comparatively, analysts predicted a 2.3% decline in sales this year.
Cramer is still bullish about the giant New York listed company, also because of his immense faith in William M. Brown’s leadership.
He’s a man who doesn’t take any prisoners. According to Mad Money’s host, “He gets it right.”
Jim Cramer, a former hedge fund manager, was impressed with the increase of 280 basis point in the adjusted gross margin that the company announced today for its fourth fiscal quarter.
He argued that 3M shares are worth buying at the current price because the company has been able to remove the legal overhangs.
Does 3M have a future as a stock?
3M Co. expects adjusted earnings per share to be between $7.60- $7.90 by 2025, which is higher than the $7.78 predicted by experts.
Jim Cramer compared 3M to growth companies in the morning, citing its rapid increase of free cash flow.
The stock has returned to being a tock that signals growth. The founder of CNBC’s Investing Club argued that this is a brand new company, which looks remarkably like the previous great growth company.
Cramer believes that Wall Street analysts are likely to rush up the stock of 3M following today’s earnings announcement.
The multinational conglomerate, Solventum Corporation, spun off their healthcare division last year. It is now listed on NYSE.
What is the highest possible price of 3M in 2025 stock?
Cramer shares the same view as Amit Mehrotra, UBS’s analyst who believes that 3M will reach $184 by 2025.
The price of his target suggests that there is still a 25% potential upside to current prices.
Mehrotra’s bullish outlook is also due to his confidence that the new CEO will focus on growth in sales and innovation of production.
He told his clients that as sales grow, margins increase, and EPS increases, the stock of 3M will be worth more than it was at its current price, which was set by him.
UBS analysts also see that the management of $MMM may decide to buy back stock worth up to $7.5 Billion through 2028. This could help unlock additional upside for $MMM.
Cramer says this post about 3M being a “growth stock” after its Q4 results is worth investing. This post may change as new information becomes available
