BTIG analyst Ryan Zimmerman has maintained their neutral stance on SOLV stock, giving a Hold rating yesterday.
Ryan Zimmerman has given his Hold rating due to a combination of factors surrounding Solventum Corporation’s recent business decisions and financial outlook. The company’s divestiture of its Purification & Filtration segment to Thermo Fisher Scientific is expected to streamline operations and reduce debt significantly. While this move will lower Solventum’s net debt and leverage ratio, the immediate impact on earnings per share is neutral, and the company will lose some EBIT from the divested segment.
Despite these changes, the divestiture allows Solventum to reinvest in its core business and pursue growth opportunities through mergers and acquisitions. However, the company’s growth rate remains modest compared to its peers, and its shares have underperformed since the spin-off. Given these factors, Zimmerman views Solventum’s stock as fairly valued, leading to the Hold rating.
Zimmerman covers the Healthcare sector, focusing on stocks such as Globus Medical, Glaukos, and GE Healthcare Technologies Inc. According to TipRanks, Zimmerman has an average return of -1.6% and a 44.38% success rate on recommended stocks.
In another report released yesterday, Piper Sandler also maintained a Hold rating on the stock with a $75.00 price target.