Solventum (NYSE:SOLV) Rating Lowered to "Buy" at Wall Street Zen

Key Points

• Solventum has been downgraded by Wall Street Zen from a "strong-buy" to a "buy" rating, reflecting a shift in analyst sentiment towards the stock.
• The company reported a quarterly EPS of $1.69, surpassing expectations, with revenue also exceeding estimates at $2.16 billion, indicating strong financial performance.
• Currently, there is a mix of ratings for Solventum, with four analysts recommending a buy, six a hold, and one a sell, while the average consensus price target is $85.75.

Solventum (NYSE:SOLV - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Sunday.

A number of other analysts also recently issued reports on SOLV. Morgan Stanley raised Solventum from an "equal weight" rating to an "overweight" rating and raised their target price for the stock from $80.00 to $103.00 in a research note on Tuesday, July 15th. Argus raised Solventum from a "hold" rating to a "buy" rating and set a $90.00 target price for the company in a research note on Tuesday, July 1st. KeyCorp began coverage on Solventum in a research note on Friday, June 6th. They issued a "sector weight" rating for the company. Piper Sandler reaffirmed an "overweight" rating and issued a $94.00 target price (up from $87.00) on shares of Solventum in a research note on Friday, August 8th. Finally, Wells Fargo & Company raised their target price on Solventum from $75.00 to $79.00 and gave the stock an "equal weight" rating in a research note on Friday, August 8th. Four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $85.75.

Solventum Price Performance

Shares of SOLV traded down $0.48 during trading hours on Friday, hitting $72.42. 454,135 shares of the stock were exchanged, compared to its average volume of 1,078,890. The company has a debt-to-equity ratio of 2.14, a quick ratio of 0.86 and a current ratio of 1.22. Solventum has a 12-month low of $60.01 and a 12-month high of $85.92. The company has a market cap of $12.56 billion, a price-to-earnings ratio of 33.50, a price-to-earnings-growth ratio of 1.77 and a beta of 0.52. The stock's 50-day moving average price is $73.77 and its two-hundred day moving average price is $72.84.

Solventum (NYSE:SOLV - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $1.69 EPS for the quarter, topping the consensus estimate of $1.45 by $0.24. Solventum had a return on equity of 29.93% and a net margin of 4.52%.The firm had revenue of $2.16 billion during the quarter, compared to analysts' expectations of $2.12 billion. During the same period in the previous year, the business earned $1.56 earnings per share. The firm's revenue for the quarter was up 3.8% on a year-over-year basis. Solventum has set its FY 2025 guidance at 5.800-5.950 EPS. Research analysts expect that Solventum will post 6.58 earnings per share for the current year.

Institutional Investors Weigh In On Solventum

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SOLV. Clarity Asset Management Inc. purchased a new stake in Solventum in the fourth quarter valued at approximately $25,000. Rossby Financial LCC purchased a new stake in Solventum in the first quarter valued at approximately $25,000. Strengthening Families & Communities LLC lifted its stake in Solventum by 376.8% in the first quarter. Strengthening Families & Communities LLC now owns 329 shares of the company's stock valued at $25,000 after buying an additional 260 shares during the last quarter. CYBER HORNET ETFs LLC purchased a new stake in Solventum in the second quarter valued at approximately $28,000. Finally, Raiffeisen Bank International AG purchased a new stake in Solventum in the fourth quarter valued at approximately $29,000.

About Solventum

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. It operates through four segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration.