BTIG analyst Ryan Zimmerman has maintained their neutral stance on SOLV stock, giving a Hold rating on November 10.
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Ryan Zimmerman has given his Hold rating due to a combination of factors influencing Solventum Corporation’s strategic and financial outlook. The recent acquisition of Acera Surgical for $725 million, with additional contingent payments, aligns with SOLV’s focus on high-acuity wound management in inpatient settings, which complements their existing product portfolio. However, while this acquisition is expected to enhance SOLV’s growth prospects in the long term, it is anticipated to be slightly dilutive to adjusted EPS in FY26 before becoming accretive in FY27.
Moreover, SOLV’s announcement of a $1 billion share repurchase program set to begin in FY26 reflects a commitment to returning value to shareholders. Despite these positive strategic moves, SOLV’s projected annual top-line growth of approximately 2% lags behind its peers, who are growing at around 6%. Given these growth projections and the current valuation, Zimmerman believes that SOLV shares are fairly valued, justifying the Hold rating.
In another report released on November 10, UBS also maintained a Hold rating on the stock with a $79.00 price target.