MMM - Solventum: A Reasonable Start Still Some Questions To Be Asked
2024-05-17 16:40:05 ET
Summary
- Solventum Corporation, a healthcare spin-off from 3M Company, had a soft start of trading due to flattish sales and high debt.
- The company operates in various healthcare segments, including MedSurg, dental solutions, and purification & filtration activities.
- Despite concerns, Solventum posted positive first-quarter earnings, with sales slightly increasing and margin gains.
- These earnings likely cannot be sustained, although debt reduction (as a priority) is promising.
The healthcare spin-off Solventum Corporation ( SOLV ) has seen a soft start of trading after it was spun-off from its former parent company 3M Company ( MMM ) early in April. Flattish sales, despite a sound positioning, as well as a high debt load created reasons to be concerned, and these concerns outweighed the luring appeal of a low valuation....
Solventum: A Reasonable Start, Still Some Questions To Be Asked