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.
4. Grail Inc. (NASDAQ:GRAL)
Grail Inc. (NASDAQ:GRAL) ranks among the recent spin-off companies that hedge funds are piling into. Following investor meetings with company management, Guggenheim reiterated its Buy rating and $130 price target for Grail Inc. (NASDAQ:GRAL) on March 23. The firm believes Galleri has long-term value as a broad-based multi-cancer early detection test, especially now that a legislative avenue for Medicare funding of an FDA-approved test has been established.
Guggenheim said it is optimistic that the FDA will approve Galleri, making it the first FDA-approved multi-cancer early detection test. The firm anticipates that future releases of more detailed data from the NHS trial will resolve the concerns raised by the trial’s primary endpoint miss and show that Galleri’s performance, safety, and efficacy remain comparable with the PATHFINDER 2 ESMO data reading.
This came after the company suffered a setback when its NHS-Galleri study failed to fulfill its primary target of lowering Stage III-IV cancer diagnoses.
Grail Inc. (NASDAQ:GRAL) is a commercial-stage healthcare company that develops a technology for the early detection of cancer. The company employs software, machine learning, and automation to identify and detect multiple deadly cancer types at earlier stages.
3. Qnity Electronics, Inc. (NYSE:Q)
Qnity Electronics, Inc. (NYSE:Q) ranks among the recent spin-off companies that hedge funds are piling into. On March 18, Qnity Electronics, Inc. (NYSE:Q) announced a partnership with NVIDIA to advance materials research and development for semiconductors. The partnership aims to support studies on materials for next-generation AI, high-performance computing, and sophisticated packaging systems.
According to Randy King, Qnity’s Chief Technology and Sustainability Officer, using accelerated modeling enables the company to shorten development times and bring new tech to the market faster, while improving performance.
Moreover, on March 11, Qnity Electronics, Inc. (NYSE:Q) established a 385,000-square-foot manufacturing plant in Newark, Delaware. The facility features a new production line that manufactures components for chemical mechanical planarization (CMP) pads. The development is part of the company’s multi-year initiative to boost semiconductor manufacturing capacity.
Qnity Electronics, Inc. (NYSE:Q) manufactures electronic materials for the semiconductor and electronics industries, with its brands including Acuplane, Circuposit, Duroptix, EPIC, Ikonic, Kalrez, Kapton, Laird, Microfill, Pyralux, Riston, Solderon Tin, and Silveron Silver.
2. Waters Corporation (NYSE:WAT)
Waters Corporation (NYSE:WAT) ranks among the recent spin-off companies that hedge funds are piling into. Waters Corporation (NYSE:WAT) discussed its strategy at the TD Cowen 46th Annual Health Care Conference on March 2, with CEO Udit Batra emphasizing development ambitions and integration efforts following the acquisition of BD Diagnostic Solutions.
The company anticipates 6.25% organic growth in its core business in 2026, fueled by strong performance in chemistry and services. That said, near-term uncertainties persist, notably DRG-related headwinds in China, which are expected to result in a 2.5%-3% decrease in Q1 and weaker growth through mid-year before a healthier Q4 rebound.
According to Batra, Waters’ operational priorities include integrating the BD business, strengthening pricing techniques, and investing extensively in bioseparations, which now account for more than 70% of R&D spending.
Looking ahead, the company hopes to drive EPS growth and margin expansion through cost management and tariffs, and to profit from a normalized LC-MS replacement cycle by 2027.
Waters Corporation (NYSE:WAT) is a global leader in life sciences and diagnostics, specializing in analytical technologies.
1. GE Vernova Inc. (NYSE:GEV)
GE Vernova Inc. (NYSE:GEV) ranks among the recent spin-off companies that hedge funds are piling into. On March 23, Evercore ISI boosted its price target for GE Vernova Inc. (NYSE:GEV) from $905 to $940 while retaining an Outperform rating on the company’s shares. The firm noted recent non-deal tour discussions with the energy sector and GE Vernova Inc. (NYSE:GEV) executives as evidence that Q1 is gearing up to be another robust period for contracts and free cash flow.
Evercore ISI also increased its EBITDA projections for fiscal years 2026 through 2028 by 3% to 7%, citing GE Vernova’s earnings growth and visibility in today’s high geopolitical-risk environment.
In addition, on March 10, GE Vernova Inc. (NYSE:GEV) stated that its Global Nuclear Fuel partnership has gained a contract extension with Entergy to deliver fuel to the Grand Gulf and River Bend Station nuclear power facilities until 2035. The deal expands the existing supply contract for four batches of the new GNF4 fuel design.
GE Vernova Inc. (NYSE:GEV) is an energy company that provides various products and services that generate, transfer, orchestrate, convert, and store electricity in the US, Europe, Asia, the Middle East, and Africa. The company operates through three segments: Power, Wind, and Electrification.
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