Mizuho Securities analyst Steven Valiquette has maintained their neutral stance on SOLV stock, giving a Hold rating on February 25.
Steven Valiquette has given his Hold rating due to a combination of factors surrounding Solventum Corporation’s recent strategic decisions. The company has agreed to sell its purification and filtration business to Thermo Fischer for $4.1 billion, which is expected to help reduce its substantial debt and simplify its operations. While this transaction is anticipated to be neutral to Solventum’s 2025 earnings, it could potentially enhance the company’s earnings per share by approximately 5% in 2026.
Despite the potential financial benefits from the sale, the exact impact on debt reduction and interest expenses remains uncertain, as it is unclear which tranches of debt will be paid down. Additionally, the sale proceeds are expected to be around $3.4 billion, which may not fully address the company’s debt challenges. Given these uncertainties and the need for more clarity on the financial outcomes, Valiquette maintains a Hold rating, suggesting a cautious approach until more information is available.
In another report released on February 25, Bank of America Securities also reiterated a Hold rating on the stock with a $85.00 price target.
SOLV’s price has also changed moderately for the past six months – from $60.180 to $84.040, which is a 39.65% increase.