Promising Growth and Strategic Flexibility: A Buy Recommendation for Solventum Corporation

Piper Sandler analyst Jason Bednar upgraded the rating on Solventum Corporation (SOLV – Research Report) to a Buy today, setting a price target of $87.00.

Jason Bednar has given his Buy rating due to a combination of factors that highlight Solventum Corporation’s promising outlook. The recent easing of U.S./China tariffs has reduced risks, allowing for a clearer path to growth. Additionally, Solventum’s recent top-line performance has been strong, with management consistently exceeding expectations and slightly raising guidance, which indicates effective execution and potential for further growth.
Moreover, Solventum’s restructuring efforts and strategic exits from TSA agreements are expected to enhance operational flexibility and margins. The sale of P&F has also provided significant capital allocation flexibility, supporting future growth initiatives. With these developments, Bednar anticipates that Solventum’s valuation multiple will increase, making it an attractive option for value and GARP investors. The potential upside in EPS estimates further strengthens the case for a Buy rating, as the company continues to improve its financial metrics and market position.

In another report released on May 9, Stifel Nicolaus also maintained a Buy rating on the stock with a $88.00 price target.