CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
In line with CFRA’s expectations, MMM announced a dividend cut along with first quarter results, now targeting a payout of around 40% of adjusted free cash flow – in line with industrial peers. We viewed MMM’s $1.26 quarterly dividend as unsustainable following the spin-off of Solventum amid litigation settlements and outstanding lawsuits. Pre-market share movement is positive, indicating that Q1 results and the announced dividend reset are being well received. MMM posts Q1 EPS of $2.39 (+21% Y/Y), $0.28 above consensus. Sales were flat Y/Y, with negative impacts from muted consumer spending offset by strength in automotive and electronic markets. Adjusted operating margins jumped 400 bps higher during the quarter, with traction on spending discipline, sourcing actions, and restructuring efforts aiding profitability across MMM’s three operating segments. We keep our 12-month target at $100, 13.1x our 2025 EPS of $7.61 (vs. $10.00 pre-Solventum split; 2024 EPS adjusted to $7.21 from $9.36).