Is MMM a good stock to buy? We came across a bullish thesis on 3M Company on r/investing_discussion by Variant_Invest. In this article, we will summarize the bulls’ thesis on MMM. 3M Company’s share was trading at $156.39 as of June 9th. MMM’s trailing and forward P/E were 30.13 and 18.08 respectively according to Yahoo Finance.
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3M Company provides diversified technology services in the America, the Asia Pacific, Europe and internationally. MMM has spent years trading under the weight of litigation concerns tied to asbestos, PFAS chemicals, and Combat Arms earplug claims, causing investors to treat the company as a perpetual legal-risk story rather than a high-quality industrial franchise. However, the underlying thesis has materially improved as several of the company’s largest overhangs have now been substantially resolved.
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The Combat Arms earplug litigation has been settled for approximately $6 billion, the PFAS water utility settlement is largely finalized, and the Aearo-related bankruptcy uncertainty has moved into the background. In addition, 3M completed the spin-off of its healthcare business, Solventum, in 2024, which simplified the company’s structure, strengthened its balance sheet flexibility, and allowed management to refocus on its core industrial and consumer operations that generate stronger margins and cash flow characteristics.
The remaining business generates roughly $24 billion in annual revenue with EBITDA margins moving toward the mid-20% range as litigation expenses and operational disruptions fade. Management has also guided for continued margin expansion through productivity initiatives and cost normalization. Free cash flow generation remains healthy, while the dividend reset that initially worried investors has improved payout sustainability and balance sheet flexibility.
Despite these improvements, 3M continues to trade at a discounted mid-teens forward earnings multiple compared to diversified industrial peers trading closer to 20–22x earnings. The bullish thesis is that as litigation fears continue to dissipate, the market could rerate 3M closer to peer valuations, creating meaningful upside potential with a price target near $160 appearing achievable rather than aggressive.
Previously, we covered a bullish thesis on GE Aerospace (GE) by Asymmetric Ventures in May 2025, which highlighted the company’s dominant aerospace MRO business, recurring aftermarket revenue, and durable competitive advantages supported by long-term OEM relationships. GE’s stock price has appreciated by approximately 36.66% since our coverage. Variant_Invest shares a similar view but emphasizes on litigation resolution and valuation rerating potential at 3M (MMM).
3M Company is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held MMM at the end of the first quarter which was 62 in the previous quarter. While we acknowledge the risk and potential of MMM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MMM and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
