Analysts Set Price Target of $85.56 for Solventum Corporation

Shares of Solventum Corporation (NYSE:SOLV) have received an average recommendation of “Hold” from analysts, according to a report by MarketBeat.com. This assessment comes from a group of thirteen ratings firms monitoring the company. Among these analysts, one has issued a sell recommendation, eight have suggested holding the stock, and four have given it a buy rating. The average price target for Solventum’s shares over the next year stands at $87.00.

Analysts have recently been active in issuing reports on Solventum. On October 30, 2023, Weiss Ratings reaffirmed a “hold (c)” rating for the company. The following week, BTIG Research upgraded the stock from a “neutral” to a “buy” rating, setting a price target of $100.00. Meanwhile, UBS Group maintained its “neutral” rating in a report dated November 21, 2023. On November 6, 2023, Zacks Research downgraded Solventum from a “strong-buy” to a “hold” rating, while Piper Sandler raised its price target from $94.00 to $98.00 and assigned an “overweight” rating.

Recent Earnings and Stock Buyback Plan

On November 6, 2023, Solventum reported its quarterly earnings, revealing earnings per share of $1.50. This figure surpassed analysts’ expectations of $1.43 by $0.07. The company recorded a return on equity of 28.01% and a net margin of 18.13%, with quarterly revenue reaching $2.10 billion, exceeding the consensus estimate of $2.05 billion. This revenue represents a 0.7% increase compared to the same quarter last year.

Looking ahead, Solventum has projected its earnings per share (EPS) for the fiscal year 2025 to be between $5.980 and $6.080. Analysts forecast an average EPS of 6.58 for the current year. In a strategic move, the company’s board authorized a stock repurchase plan on November 20, 2023, allowing Solventum to repurchase up to $1.00 billion of its shares, which amounts to 7.5% of its total shares. Such buyback programs typically indicate that the board believes the stock is undervalued.

Institutional Trading Activity

Recent trading activity has seen several large investors adjust their positions in Solventum. Strengthening Families & Communities LLC increased its holdings by an impressive 376.8% in the first quarter, now holding 329 shares valued at approximately $25,000 after acquiring an additional 260 shares. Measured Wealth Private Client Group LLC also entered the scene, purchasing a new position worth around $25,000 in the third quarter.

Similarly, Deseret Mutual Benefit Administrators raised its stake by 78.7%, now owning 370 shares valued at $27,000 after acquiring an additional 163 shares. Additionally, CYBER HORNET ETFs LLC purchased a new stake in Solventum during the second quarter, valued at about $28,000. Finally, Barrett & Company Inc. increased its position by 206.2%, holding 398 shares valued at $30,000 after purchasing 268 additional shares.

Solventum Corporation continues to operate as a prominent healthcare company, focusing on developing, manufacturing, and commercializing solutions to address critical patient needs. The company categorizes its operations into four segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration.