I continue to believe that 3M (NYSE:MMM) is a pricey stock, but an exceptionally well-run industrial.
CEO Inge Thulin is starting to build a strong following among analysts
and investors and while 3M's performance in the first quarter wasn't
without some flaws, I would argue that its performance compares quite
well to the industrial sector as a whole.
There's still a lot that
3M can do. The company can afford to add more debt to the balance
sheet, particularly in pursuit of acquisitions that offer growth into
adjacent markets and can leverage the already-substantial infrastructure
in place. I also believe that while margin improvement potential may be
limited relative to its peer group, there are still opportunities for
3M to leverage its product portfolio, reap higher prices, and post some
improvement in margins. I'm not going to argue that 3M is a bargain at
today's price, but there aren't too many U.S.-based industrials that I'd
be happier owning today.
Read more here:
3M Still Pricey, But At Least Earning Its Keep
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