FMP
Apr 2, 2024 12:47 PM - Davit Kirakosyan
RBC Capital analysts reduced their price target for 3M Company (NYSE:MMM) to $78 from $84 while maintaining an Underperform rating. This update follows the April 1 spinoff of 3M’s healthcare business, Solventum. Following this event, 3M shares gained more than 6% yesterday.
For the first quarter of 2024, 3M's Health Care segment will still be included in the company's financial results. Key adjustments in RBC's model include the removal of Health Care sales and profit from the second quarter of 2024, the assumption of $150-$175 million in annual stranded costs recorded across the segments, and the expectation for Transition Service Agreement (TSA) income and costs to have a net neutral impact overall.
RBC’s new price target suggests a 15% downside from the current stock price, reflecting adjustments for legal liabilities and the impact of the healthcare business spinoff.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...