3M eyes margin gains, modest growth, says Deutsche Bank

Published 01/13/2025, 01:34 PM
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Investing.com -- Deutsche Bank expects 3M Company (NYSE:MMM) to outline plans for improving operating margins at its February 26 Investor Day.

“At this event, we expect 3M to lay out an attractive plan for multi-year operating margin improvement (from the low-20s today to the mid-20s in the next few years, and to high-20s over a longer time horizon), and also see the potential for the company to guide for modestly higher organic growth vs. history (2-4% range),” analysts wrote.

Analysts also anticipate modestly higher organic growth guidance, targeting a 2-4% range, above historical levels.

For Q4 2024, Deutsche Bank (ETR:DBKGn) forecasts a slight earnings beat, though 2025 guidance may fall below current consensus of $7.85 EPS. However, this is seen as priced in by investors.

Catalysts include 3M’s Q4 earnings on January 21, 2025, macroeconomic data like PMI, and the February Investor Day. Risks involve potential earnings misses, weak industrial activity, and slower progress on operational improvements under CEO Bill Brown.

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