Solventum Corporation (SOLV) Stock Forecast & Price Target

Solventum is positioned for stronger fundamentals as its portfolio becomes cleaner, with purification and filtration sold and HIS now headed for separation, leaving a more focused medtech consumables platform centered on MedSurg and Dental. Management’s case for value creation is supported by 4%-5% organic growth, a 9% CAGR in adjusted EPS, and a path to materially better free cash flow as separation-related costs roll off, with roughly 90% of TSAs expected to be exited by year-end 2026. MedSurg still has significant white-space in infection prevention and NPWT, Dental is benefiting from higher-margin product mix and normalized market growth, and HIS’s ~80% RCM share underscores the value that can be unlocked for shareholders.

Solventum is facing a negative fundamental setup because its growth profile remains modest relative to peers, with only 2.5% to 3.0% FY26 organic revenue growth and a lower long-term trajectory than businesses trading at higher multiples. The outlook is further pressured by earnings quality concerns, including dependence on tariff refunds, expected 2H26 gross margins below 56%, potential dilution from the HIS separation, and the risk that higher interest rates, TSA costs, and weak pricing power erode margin expansion. Competition in key areas, slower operating leverage, and execution risk around establishing the company as a stand-alone firm all reinforce the view that downside to estimates is more likely than a re-rating.