Morgan Stanley analysts reiterated their Equalweight rating and maintained a $60 price target on Solventum (NYSE:SOLV) stock. The analysts highlighted the company's focus on transforming its corporate culture since the spin-off, noting stronger-than-expected employee engagement and leadership buy-in.

The primary goal for Solventum is to become more agile, improve R&D productivity, and increase its focus on healthcare. While there is ongoing debate about the balance between reinvesting for growth and maintaining margins, the analysts emphasized that repositioning the company towards faster-growing markets and boosting top-line volumes is the top priority.

There may be uncertainty about 2025 EPS projections due to this strategic shift, but the analysts expressed a preference for robust investment to drive long-term growth rather than pursuing more conservative measures.