Peet Serfontein & Khumbulani Kunene
We enter a long position with a target price of $180 and a stop-loss of $145.
3M Company is a diversified global manufacturer, technology innovator, and marketer of a wide variety of products (including adhesives, abrasives, filtration systems, electronic materials, medical supplies and personal protective equipment). The firm develops and produces a broad range of industrial, safety, healthcare and consumer products that are used across numerous sectors of the global economy. Its operations are built around advanced materials science and engineering capabilities.
The company has operations spanning across more than 70 countries and customers in nearly every major market. 3M also boasts a highly-diversified revenue base which reduces reliance on any single industry or geographic region.
Technically, the recent volume distribution makes the stock an attractive candidate for a potential long position (see the insert on the main chart). The recent behaviour shows that selling pressure may be moderating in anticipation of a potential recovery, supportive of our bullish bias.
The developing inclining channel pattern (see the black parallel trendlines on the main chart) supports a bullish outlook because it reflects a structured and sustained upward trend. The lower boundary of the channel often provides strategic entry opportunities.
Shallow downside price momentum according to the MACD, and the sideways trajectory of the on-balance volume (OBV) indicator, also supports our bullish view.
| Share Information | |
|---|---|
| Share Code | MMM US |
| Industry | Capital Goods |
| Market Capital (USD) | 81.77 billion |
| One Year Total Return | 7.19% |
| Return Year-to-Date | -2.59% |
| Current Price (USD) | 155.25 |
| 52 Week High (USD) | 177.41 |
| 52 Week Low (USD) | 121.98 |
| Financial Year End | December |
| The price remains just below its 200-day simple moving average (SMA), which also supports a bull case for the stock, highlighting long-term structural demand. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY25 | FY26E | FY27E | FY28E | |
| Headline Earnings per Share (USD) | 8.06 | 8.67 | 9.42 | 10.08 |
| Growth (%) | 7.54 | 8.70 | 6.97 | |
| Dividend Per Share (USD) | 2.92 | 3.13 | 3.33 | 3.36 |
| Growth (%) | 7.19 | 6.26 | 0.87 | |
| Forward PE (times) | 17.91 | 16.48 | 15.40 | |
| Forward Dividend Yield (%) | 2.02 | 2.14 | 2.16 | |
| The company is set to deliver positive earnings growth over the medium term with management recently highlighting that they are on track to meet or exceed its 2027 goals. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view:
| Share Name and Position | BLK - Stop Loss (Close the position) |
MSFT - Buy (Continue to hold) |
AZO - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 1 073.00 | 389.00 | 3 664.84 |
| Current Price | 955.45 | 405.76 | 3 726.02 |
| Movement | -11% | +4.3% | +1.7% |
| Comment | The stock has breached our stop-loss level, and we closed the position. |
The price is at the lower range of a linear regression channel pattern, which remains of interest. Remains below its 200-day simple moving average. Fading downside momentum is supportive. Our profit target is $450.00 with a trailing stop-loss at $393.00. |
The emergence of a developing Wave 5 out of the Elliott wave price theory remains of interest. Remains below its 200-day simple moving average. Upside momentum regained some strength. Our profit target is $4 060.00 with a trailing stop-loss at $3 625.00 |
| Time to exit | 13 May 2026 | 15 April 2026 |
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