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Research Alert: CFRA Maintains Hold Opinion On Shares Of Solventum Corporation
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Solventum Corporation
May 26, 2025 5:22 AM

03:35 PM EDT, 05/09/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our 12-month target to $77 from $87, 13.9x our 2025 EPS, a discount to peers due to our forecasts of a below-peer EPS growth rate. We widen our 2025 EPS estimate by $0.04 to $5.56 and 2026 by $0.03 to $5.93. SOLV reported Q1 EPS of $1.34 vs. $2.08, exceeding the S&P Capital IQ consensus view by $0.12. SOLV reported mixed first-quarter results. Sales increased by 2.6% Y/Y, though operating margin contracted to 19.7% from 24.0% last year due to lower gross margins, the impact of the 3M supply agreement mark-up, and increased operating expenses related to public company stand-up costs and growth investments. Despite the challenging Q1, management expressed confidence in its outlook by increasing its 2025 organic sales growth outlook by 50 bps to a range of 1.5% to 2.5%, while maintaining EPS guidance of $5.45 to $5.65. We think the sale of the Purification and Filtration segment for $3.4B, announced in February, will reshape SOLV's portfolio and potentially improve its financial position once closed.

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