Analyst Kevin Caliendo from UBS maintained a Hold rating on Solventum Corporation and increased the price target to $79.00 from $77.00.
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Kevin Caliendo has given his Hold rating due to a combination of factors related to Solventum Corporation’s recent performance and future outlook. The company has shown strong execution in the third quarter and has proactively addressed concerns for 2026 by introducing a $500 million long-term cost-saving initiative, “Transform for the Future.” Despite these efforts, there are still concerns about the potential impact of tariff costs on the adjusted operating income margin in 2026, which could slow EPS growth and challenge the company’s mid-term target of a 10% EPS CAGR through 2028.
While the new program and better-than-expected topline performance provide some optimism for future compensation, the forecasted adjusted net income and EPS growth for 2026 remain below the 10% target. The analyst has raised the FY25 adjusted EPS forecast due to a third-quarter beat and has increased the price target slightly, reflecting a higher baseline for FY26. However, the overall outlook remains cautious, justifying the Hold rating as the company works to realize the benefits of its transformation program more quickly.
In another report released on November 8, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $78.00 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SOLV in relation to earlier this year.