Analyst Rick Wise from Stifel Nicolaus maintained a Buy rating on Solventum Corporation and keeping the price target at $88.00.
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Rick Wise has given his Buy rating due to a combination of factors related to Solventum Corporation’s recent strategic moves and financial outlook. The company recently completed the sale of its Purification & Filtration business, which is expected to be accretive to earnings per share (EPS) as the proceeds will be used to reduce debt, thereby offsetting the loss of earnings from the sold business. This strategic decision is anticipated to provide a small EPS benefit in the third quarter and a more substantial impact in the fourth quarter, with further benefits expected in the following year.
Additionally, Solventum’s management has shared optimistic medium-term financial targets, which have led to upward revisions in the company’s organic sales growth, margin, and EPS estimates for the years 2026 to 2028. These positive adjustments in financial projections, combined with the strategic business sale, underpin Wise’s confidence in the company’s future performance, justifying the Buy rating on Solventum’s stock.
Wise covers the Healthcare sector, focusing on stocks such as Kestra Medical Technologies Ltd., Masimo, and Medtronic. According to TipRanks, Wise has an average return of 1.2% and a 51.60% success rate on recommended stocks.
In another report released on September 9, Morgan Stanley also maintained a Buy rating on the stock with a $103.00 price target.