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Investing.com - 3M (NYSE:MMM), currently trading at $153.59 and showing a remarkable 56% return over the past year, received a reiterated Neutral rating and $155.00 price target from Mizuho (NYSE:MFG) following its second-quarter earnings report. According to InvestingPro analysis, the $83 billion market cap company appears fairly valued at current levels.
The industrial conglomerate posted adjusted earnings per share of $2.16, exceeding Wall Street expectations of $2.01 and Mizuho’s estimate of $1.96. The earnings beat was primarily driven by the Transportation & Electronics segment, which performed 8 cents above expectations.
3M reported adjusted operating margin of 24.5%, expanding 290 basis points year-over-year from 21.6% in the prior year period. Organic sales increased 1.5% year-over-year across all segments, slightly outpacing consensus estimates of 1.4% growth.
The company generated $1.3 billion in adjusted free cash flow during the quarter, achieving 110% conversion. 3M returned an equal amount to shareholders through dividends and share repurchases, with approximately $900 million allocated to buybacks.
Mizuho noted that 3M has completed approximately $2.2 billion in share repurchases during the first half of 2025 and is on track to exceed its goal of 215 new product launches this year after delivering 126 in the first half.
In other recent news, 3M Company has been actively engaging with shareholders and analysts, resulting in several key developments. At the company’s annual meeting, shareholders approved the re-election of 11 board members and ratified PricewaterhouseCoopers LLP as the independent accounting firm for 2025. These decisions reflect strong shareholder confidence in 3M’s governance and financial oversight. Meanwhile, Citi analyst Andrew Kaplowitz raised the price target for 3M stock to $160, maintaining a Neutral rating, citing a renewed focus on performance and margin improvements under new management.
In a significant legal update, 3M reached a settlement to resolve PFAS-related claims in New Jersey, resulting in a $285 million pre-tax charge in the second quarter of 2025. This settlement is part of 3M’s strategy to manage risks and focus on operational excellence. Additionally, UBS analyst Amit Mehrotra reaffirmed a Buy rating for 3M, increasing the 2025 earnings per share estimate to $8.00, which is above the consensus estimate. Mehrotra highlighted positive earnings guidance and potential currency-related benefits as indicators of 3M’s improving market position. These recent developments underscore 3M’s ongoing efforts to enhance shareholder value and operational performance.
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