Solventum initiated with an Equal Weight at Morgan Stanley

Morgan Stanley initiated coverage of Solventum with an Equal Weight rating and $70 price target. The firm sees upside risk to the company’s 2024 guide and potential path to mid-single-digit growth, noting that while the stock looks cheap, it prefers to start the name at neutral simply due to how early the story and management team are at this point, the analyst tells investors in a research note. Morgan Stanley adds that while it sees some margin upside from SKU rationalization, investment will also be needed to shift growth.