3M Co (NYSE: MMM) pushed 4% up after reporting market-beating financial results for the fourth quarter on Tuesday.
Shares of the multinational conglomerate have nearly doubled over the past 11 months.
Still, famed investor Jim Cramer remains positive and continues to see further upside in 3M stock.
“This is a buy, even here [following massive rally], it’s a buy,” he said this morning on CNBC’s “Squawk on the Street”.
Note that a 1.90% dividend yield makes 3M shares all the more exciting to own at writing.
Cramer has confidence in 3M’s chief executive
3M now forecasts its sales to grow by up to 1.5% in 2025. Analysts, in comparison, were at a decline of 2.3% this year.
Cramer remains bullish on the New York-listed giant also because he has immense confidence in the leadership of William M. Brown.
“He’s the kind of guy who takes no prisoners. He gets it right,” according to the Mad Money host.
Former hedge fund manager Jim Cramer was particularly impressed by the 280 basis points increase the company reported in adjusted gross margin for its fiscal fourth quarter today.
3M stock is worth owning at current levels as the management has succeeded in removing the litigations-related overhangs as well, he argued.
Is 3M a growth stock now?
3M Co expects its adjusted per-share earnings to fall between $7.60 and $7.90 in 2025 – also ahead of the $7.78 that experts had forecast.
Jim Cramer even went on to liken 3M with growth companies this morning as it’s growing its free cash flow at a rather exciting pace.
“The stock is back to be a growths tock. This is a new company that’s very much like the old great growth company,” the founder of CNBC’s Investing Club argued on Tuesday.
Cramer is fully convinced that Wall Street analysts will rush to upgrade 3M stock following its earnings release today.
Last year, the multinational conglomerate spun off its healthcare business now traded on the NYSE as Solventum Corporation.
How high could 3M stock go in 2025?
Cramer’s view on 3M shares is similar to Amit Mehrotra of UBS who expects them to hit $184 in 2025.
His price target indicates potential for another 25% upside from current levels.
Mehrotra also cited confidence in the new CEO’s focus on sales growth and production innovation for his bullish view.
As sales growth picks up, operating margins improve, and drive EPS upside, 3M stock will command a higher multiple than what’s baked into its price at writing, he told clients late last year.
Additionally, the UBS analyst sees the company’s management decided in favor of buying back up to $7.5 billion worth of the stock through 2028, which may help unlock further upside in $MMM.
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