Financial institution Of America Securities analyst Andrew Obin maintained a Purchase score on 3M Firm MMM with a worth forecast of $170 following first-quarter outcomes reported on Tuesday.
The corporate reported web gross sales of $5.95 billion, a decline of 1.0% year-over-year (Y/Y), beating the consensus of $5.781 billion, and adjusted EPS was $1.88, up 10% Y/Y, beating the consensus of $1.77.
3M sees 2025 adjusted EPS of $7.60-$7.90 (vs. cons. $7.75) and extra tariff sensitivity losses to twenty to 40 cents per share.
The analyst writes that the corporate’s outcomes beat expectations, with power famous in electrical markets, industrial adhesives and tapes (Security & Industrials), aerospace (Transportation & Electronics), and client security and well-being (Shopper).
The analyst notes that 3M estimates a complete annualized tariff affect of $850 million. Nonetheless, as a result of April begin date and their 90-day stock cycle, the corporate expects a $400 million impact earlier than offsets in 2025.
The analyst believes the affect of Chinese language import tariffs is extra closely concentrated in its client enterprise.
Obin reiterated the 2025 EPS estimate at $7.60, factoring in a 40-cent headwind from tariffs (an elevated $0.20 affect).
This unfavorable impact is negated by an extra 16-cent profit from international trade (as FX assumptions are much less unfavorable than 3M’s steerage), and the 10-cent operational beat within the first quarter provides the analyst.
The analyst initiatives a 6-cent headwind within the second via fourth quarters as a result of timing of curiosity bills.
Traders can acquire publicity to GLW through ProShares Good Supplies ETF TINT and Invesco Change-Traded Fund Belief II Invesco S&P Extremely Dividend Income ETF RDIV.
Worth Motion: 3M shares are up 1.89% at $138.63 on the final verify Thursday.
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