Billionaire Nelson Peltz’s 8 Stock Picks with Highest Upside Potential

2. Solventum Corporation (NYSE:SOLV)

Trian Partners’ Stake: $559,053,823

Number of Hedge Fund Holders: 41

Analyst Upside Potential: 26.77%

Solventum Corporation (NYSE:SOLV) is an international healthcare company that develops and sells various medical products. The company operates through four business segments including Medical Surgical, Dental Solutions, Health Information Systems, and Purification and Filtration. Through these segments, the company caters to various patient needs such as providing advanced wound care solutions, a suite of dental and orthodontic products, and even software solutions for healthcare providers.

As per a March 21 report, Stifel Nicolaus analyst Rick Wise maintained a Buy rating on the stock with a price target of $88. Moreover, on March 21, Solventum Corporation (NYSE:SOLV) announced entering into a partnership with SprintRay to transform the digital dentistry market by enabling high-quality, permanent same-day dental restorations through chairside 3D printing technology. The collaboration focuses on developing and selling durable dentistry products.

The company delivered growth in its fiscal fourth quarter results for 2024. Solventum Corporation (NYSE:SOLV) reported net sales of $2.074 billion up 1.9% year-over-year and 23% organically. Dental Solutions was the largest contributor to growth as its revenue grew 3% year-over-year to reach $315 million. Looking ahead, management expects organic sales growth of 1.0% to 2.0% for fiscal 2025, with free cash flow between $450 million to $550 million.

Diamond Hill Mid Cap Strategy stated the following regarding Solventum Corporation (NYSE:SOLV) in its Q4 2024 investor letter:

“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated a number of new positions in Q4, including ICON, Informatica, Teledyne Technologies, LPL Financial Holdings, Teleflex Incorporated and Solventum Corporation (NYSE:SOLV).

Solventum, formerly 3M’s health care business, was spun out to shareholders in 2024. It provides a portfolio of solutions to address critical patient needs. The company has been challenged by years of underinvestment and market-share losses. However, the new management team is focused on driving revenue growth in line with peers’ — which we think is likelier as a standalone company. We also expect Solventum to optimize research and development to improve its sales mix and include new products.”