Wedbush bullish on Solventum, initiates with an Outperform

As previously reported, Wedbush initiated coverage of Solventum (SOLV) with an Outperform rating and $94 price target as the firm believes shares represent a compelling, multi-catalyst special situation offering asymmetric upside potential. Spun off from 3M (MMM) on April 24, Solventum has underperformed expectations during its early standalone tenure, with adjusted EBIT compressing about 480 basis points from pre-spin levels. However, Wedbush thinks the stock’s current 9.6 times EV/EBITDA multiple materially undervalues a portfolio of market-leading franchises across MedSurg, Dental Solutions, and Health Info Systems, each of which commands premium positions in their respective peer groups.