Initiate Mkt: Lots of Moving Parts, but Too Many Execution Hurdles to Underwrite

研报英文原文证据摘录

Initiate Mkt: Lots of Moving Parts, but Too Many Execution Hurdles to Underwrite

July 8, 2026 | 16:01 ET~

Solventum Corp

SOLV-NYSE Rating Price: Jul-7 Target Total Rtn Medical Supplies & Devices

Market Perform $76.28 $81.00 6%

Vik Chopra Analyst

vik.chopra@bmo.com (917) 581-0141

Legal Entity: BMO Capital Markets Corp.

Initiate Mkt: Lots of Moving Parts, but Too Many

2YR Price Volume Chart

100Execution Hurdles to Underwrite

Bottom Line: 80

We initiate SOLV with a Market Perform rating and $81 target price. We believe the 70 15

transformation thesis is credible and the valuation discount to peers is real, but with a 60 10

3Q ERP cutover on the horizon, an activist overhang clouding the strategic narrative, AI 50 5

risk threatening the highest-margin segment, and a $500 million savings program still 40 Jan Jul Jan Jul 0

in its early innings, we see limited risk/reward to owning the stock today. We would LHS: Price ($) / RHS: Volume (mm) Source: FactSet

also like to see growth more in line with peers before potentially becoming more Company Data in $

constructive on the name. Dividend $0.00 Shares O/S (mm) 173.2

Yield 0.0% Market Cap (mm) $13,209

Key Points

EV (mm) $18,251 AD Vol. (mm) 1.24

AI Pressure on Health Information Systems Is Hard to Ignore. While proprietary BMO Estimates in $

data and long-term contracts provide a near-term moat, AI-native competitors

(FY-Dec.) 2025A 2026E 2027E

are accelerating medical coding innovation. Given HIS (16% of sales) represents

EPS $6.11 $6.55 $7.03Solventum's highest-margin segment, growth deceleration or margin compression

could disproportionately impact earnings. Our analysis shows that every incremental Revenue $8,325 $8,218 $8,507