Solventum initiated with a Neutral at Mizuho

Mizuho analyst Steven Valiquette initiated coverage of Solventum (SOLV) with a Neutral rating and $70 price target Solventum has a diversified set of healthcare assets following the spin-off from 3M (MMM) earlier this year, the analyst tells investors. However, below-market current top-line growth post-Covid, near-term gross margin pressure due to TSA arrangements, and higher-than-average leverage leave the newly hired external management in “a challenging position,” the analyst argues.