What Are Wall Street Analysts' Target Price for Solventum Stock?

Eagan, Minnesota-based Solventum Corporation (SOLV) is a healthcare company with a market cap of $12.9 billion. It develops, manufactures, and commercializes a portfolio of solutions to address critical customer and patient needs.

This healthcare company has considerably underperformed the broader market over the past 52 weeks. Shares of SOLV have gained 2.7% over this time frame, while the broader S&P 500 Index ($SPX) has soared 26.6%. Moreover, on a YTD basis, the stock is down 3.9%, compared to SPX’s 8.1% rise.

Looking closer, SOLV has also lagged the State Street Healthcare Select Sector SPDR ETF (XLV), which gained 9.5% over the past 52 weeks. However, it has outpaced XLV’s 5.9% YTD drop. 

On May 5, SOLV delivered better-than-expected Q1 results, and its shares surged 2.8% in the following trading session. The company’s revenue declined 3% year-over-year to $2 billion, but topped analyst estimates by 1%. Moreover, its adjusted EPS of $1.48 came in 9.6% ahead of consensus expectations. Management pointed to strong commercial execution and positive volume and mix as factors supporting its upbeat performance. 

For the current fiscal year, ending in December, analysts expect SOLV’s EPS to grow 7.7% year over year to $6.58. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.  

Among the 15 analysts covering the stock, the consensus rating is a "Moderate Buy," which is based on seven “Strong Buy,” six “Hold,” and two "Strong Sell” ratings.  

The configuration is more bullish than a month ago, with six analysts suggesting a “Strong Buy.”  

On May 15, Wedbush initiated coverage of SOLV with an “Outperform” rating and $94 price target, indicating a 23.5% potential upside from the current levels. 

The mean price target of $80.33 suggests a 5.5% premium to its current price levels, while its Street-high price target of $100 implies a 31.4% potential upside.