Solventum: Vegas takes

Research evidence excerpt

Solventum: Vegas takes

itors because it can also sell rei.tan@bofa.com

its grouping applications to HCIT competitors which is also contributing to growth in the

US and internationally (currently doing so faster than what its seen in a while).

RCM a $10m SAM, contracts typically 3-5yrs Stock Data

SOLV says RCM market is a $10m serviceable addressable market, with market share not a Price 74.41 USD

metric it is using. SOLV looks at number of hospitals using one or more of their products, Price Objective 85.00 USD

which is more than 75% of the US market. SOLV says many customers may use 4-5 SOLV Date Established 25-Feb-2025

products in RCM and that is how it measures usage and growth. SOLV also says it sees Investment Opinion B-2-9

growth opportunity in customer footprint expansion. Contracts are typically 3-5yrs but 52-Week Range 62.38 USD - 88.20 USD

SOLV is currently seeing significant growth from additional module adds. Mrkt Val (mn) / Shares Out 12,886 USD / 173.2

(mn)

Underlying growth accelerating; HIS a key component Free Float 85.0%

SOLV started off with strong Q1 (4% y/y underlying growth) but highlights upcoming Average Daily Value (mn) 102.72 USD

ERP changes that will impact Q2 and Q3. SOLV expects $100m of sales coming into Q2 BofA Ticker / Exchange SOLV / NYS

and out of Q3. However, SOLV reiterating that it feels really good about the underlying Bloomberg / Reuters SOLV US / SOLV.N

business (starting to see accelerating growth take hold on business) and margin ROE (2026E) 22.4%

expansion. SOLV says HIS is a key component to its underlying growth acceleration and Net Dbt to Eqty (Dec-2025A) 90.9%

all the segments are moving forward and accelerating (just at different times). We

reiterate our Neutral rating as we evaluate long term growth and value of SOLV’s