MDWD - Solventum: Stumbling Out Of The Gate

2024-07-07 17:30:00 ET

Summary

• Solventum Corporation, a spinoff of 3M Company's healthcare business, has seen an over 40% decline in shareholder value since going public in late March.
• The company is now reportedly considering acquiring Mediwound, a provider of tissue repair solutions, which may change its growth prospects.
• The stock appears attractive on a P/E and free cash flow yield basis, but that view comes with a couple of caveats.
• An analysis around Solventum Corporation follows in the paragraphs below.

Today, we put Solventum Corporation ( SOLV ) in the spotlight for the first time. This spinoff of the former 3M Company ( MMM ) healthcare business came public in late March and already has destroyed a considerable amount of shareholder value in its short time as its own public company. The company also looks like it is making a play to acquire Mediwound ( MDWD ), a provider of non-surgical solutions for tissue repair and regeneration at a large buyout premium whose story I highlighted early in 2024....

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