BTIG analyst Ryan Zimmerman has maintained their neutral stance on SOLV stock, giving a Hold rating today.
Ryan Zimmerman has given his Hold rating due to a combination of factors influencing Solventum Corporation’s performance and outlook. The company reported strong revenue and earnings per share that exceeded expectations, driven by outperforming segments like MedSurg and H.I.S., although this was offset by weaker performance in Dental and P&F. Despite these positive results, the company faces significant challenges, such as a tariff impact that is expected to affect margins in the second half of the fiscal year.
Additionally, while Solventum has updated its guidance to reflect improved organic revenue growth, the company’s shares have underperformed compared to its peers in the large-cap MedTech sector, which typically exhibit stronger growth and margin profiles. The company’s long-term growth projections are modest, with a top-line growth rate of approximately 3% annually, which is lower than the 6% growth rate of its peers. Given these factors, Zimmerman believes that Solventum’s shares are fairly valued at present, justifying the Hold rating.
According to TipRanks, Zimmerman is an analyst with an average return of -2.9% and a 41.72% success rate. Zimmerman covers the Healthcare sector, focusing on stocks such as GE Healthcare Technologies Inc, Zimmer Biomet Holdings, and Globus Medical.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $80.00 price target.