Wednesday, April 29, 2015

Seeking Alpha: 3M Still Pricey, But At Least Earning Its Keep

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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