Solventum's price target was raised to $100 from $95 by BTIG, which kept its Buy rating on the stock. The brokerage made the change Thursday after the company reported third-quarter results.
Third-quarter revenue was $1.949 billion, down 7.0% from a year earlier but up 3.5% on an adjusted basis. Adjusted earnings per share were $1.45, above BTIG's estimate of $1.34 and the consensus of $1.34. Revenue was below BTIG's $1.908 billion estimate but above the consensus forecast of $1.931 billion.
Solventum said advance ordering ahead of an ERP cutover created a headwind of about 630 basis points against organic growth. Organic revenue fell 2.8% year over year in the quarter.
The company raised its full-year organic growth guidance to the high end of its 2.5% to 3.0% range. It moved operating margin guidance to the high end of 22.2% to 22.7%. Adjusted earnings per share guidance rose to $7.20 to $7.30 from $7.10 to $7.20.
BTIG said Solventum eliminated about 100 basis points of cost of goods sold headwind from 3M, which BTIG expects to add 50 basis points to fiscal 2027 gross margins.