5 Recent Spin-off Companies That Hedge Funds Are Piling Into

In this article, we will take a look at the 5 Recent Spin-off Companies That Hedge Funds Are Piling Into. For a deeper discussion and an extended list, please see 10 Recent Spin-off Companies That Hedge Funds Are Piling Into.

5. Solventum Corporation (NYSE:SOLV)

Solventum Corporation (NYSE:SOLV) ranks among the recent spin-off companies that hedge funds are piling into. On March 20, CIBC reiterated its Outperformer rating on Solventum Corporation (NYSE:SOLV) and its $37 price target. The firm believes the company’s 2026 forecast, which is slightly higher than consensus estimates, includes some caution, notably on gross margins.

CIBC stated that management might use increased balance sheet capacity for mergers and acquisitions to increase scale, footprint, and service offerings, with deals potentially occurring in 2026.

Meanwhile, following the company’s full-year results, Jefferies reiterated its Buy rating and $32 price target for Solventum Corporation (NYSE:SOLV). The company slightly surpassed top-line expectations for its fiscal year earnings, while adjusted EBITDA came in slightly below Jefferies’ forecast, though above consensus.

The firm said the fiscal 2026 forecast is prudent but fair, generally in line with consensus, even though it assumes a lower gross margin than Jefferies estimates.

Solventum Corporation (NYSE:SOLV) is a healthcare company that develops, manufactures, and commercializes a portfolio of solutions to address critical customer and patient needs in the US and internationally. It has three segments: Medsurg, Dental Solutions, and Health Information Systems.