2024-04-02 09:30:01 ET
Summary
- 3M Company has completed the spinoff of its healthcare business, Solventum Corporation, allowing both companies to focus on their respective strengths.
- Solventum has a well-diversified business model with strong growth opportunities, but faces challenges such as low entry barriers and elevated debt.
- MMM is showing signs of stability and growth, with settled lawsuits and positive market trends, making it a promising investment with potential for a high total return.
Introduction
On January 2, I wrote an article titled " A Bold Prediction: I Believe 3M Could Double." This was my second bullish article on 3M Company (MMM) stock after I started covering the stock again on September 29. Back then, I called MMM stock a "30% Undervalued Dumpster Fire."
Since January 2, the stock price has been roughly unchanged. On some websites, it looks like the stock is down. However, that is due to the just-executed Solventum Corporation ( SOLV ) spinoff, which was 3M's healthcare segment.
I believe this spinoff was a fantastic move that will allow both companies to focus on what they do best. On top of that, MMM is seeing some progress when it comes to litigations and a bigger focus on growth areas, including climate technology, consumer electronics, and automation.
Hence, in this article, I'll walk you through the spinoff, explain why I'm bullish on both the MMM and SOLV tickers, and why I stick to my bullish call that 3M may double in the years ahead....
Read the full article on Seeking Alpha
For further details see:
3M Says Bye To Solventum - Why I Stick To My Bullish Call