Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - UBS has reiterated a Buy rating and $184.00 price target on 3M (NYSE:MMM) following the company’s better-than-expected quarterly performance. Currently trading at $150.83, InvestingPro analysis suggests the stock is slightly overvalued, with analyst targets ranging from $101 to $187.
The industrial conglomerate delivered a 4% operating profit beat and 7% EPS beat in its latest earnings report, with UBS noting that the outperformance was primarily margin-driven, though organic growth also exceeded expectations. The company maintains a solid gross profit margin of 41.12% on revenues of $24.6B.
3M has raised its full-year guidance to $7.88 per share at the midpoint, up from its previous guidance of $7.75 and above the consensus estimate of $7.66, despite now including a 10-cent impact from tariffs that was previously excluded from guidance.
The company achieved a 40% incremental margin on sequential revenue growth, while organic growth in its largest segment, safety and industrial, showed acceleration compared to the prior quarter, suggesting early success with new product introductions.
UBS expects organic growth rates in 3M’s largest businesses to improve compared to first-half performance, with the analyst noting that the company’s "relatively new management continues to fire on all cylinders."
In other recent news, 3M reported strong second-quarter earnings, with adjusted earnings per share of $2.16, surpassing Wall Street expectations of $2.01 and Mizuho (NYSE:MFG)’s estimate of $1.96. The company’s Transportation & Electronics segment was a notable contributor, performing 8 cents above expectations. Additionally, 3M achieved an adjusted operating margin of 24.5%, a significant increase from the previous year. Citi analyst Andrew Kaplowitz raised the stock price target to $160, maintaining a Neutral rating, noting a positive trajectory under new management. In corporate governance developments, 3M shareholders re-elected all 11 board members and ratified PricewaterhouseCoopers LLP as the independent accounting firm for 2025. Furthermore, 3M settled PFAS-related claims in New Jersey with a $285 million pre-tax charge, part of the company’s strategy to manage risks and focus on growth. The settlement aims to resolve litigation without admitting liability. These developments indicate 3M’s ongoing efforts to strengthen its financial and operational performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.