Billionaire Seth Klarman’s 10 Stock Picks with Huge Upside Potential

8. Solventum Corporation (NYSE:SOLV)

Upside Potential as of April 29: 25.37%

Baupost Group’s Stake Value: $95,543,000

Solventum Corporation (NYSE:SOLV) is a healthcare company that spun off from 3M Company (NYSE:MMM) on April 1, 2024. The company operates through several business segments, including MedSurg, Dental Solutions, and Health Information Systems. It provides medical and surgical supplies, dental equipment and materials, and healthcare information technology solutions to healthcare providers worldwide.

Solventum Corporation (NYSE:SOLV) reported positive sales growth in Q4 2024—increasing by 1.9% to $2.074 billion. For the full year 2024, the company delivered $8.254 billion in sales and $6.70 in adjusted earnings per share. The MedSurg and Dental Solutions segments were the primary drivers of organic sales growth.

The company recently announced the sale of its Purification & Filtration business. This marks a significant milestone in its portfolio optimization strategy. At its 2025 Investor Day, CEO Bryan Hanson outlined an ambitious long-range plan through 2028. The firm targets organic sales growth of 4-5%, operating margins between 23-25%, and EPS compound annual growth rate of 10% over the three years. Still, on this point, Solventum (NYSE:SOLV) is executing a three-phased transformation plan. It focuses on stabilizing the business, enhancing strategic focus, and optimizing its portfolio.

Analysts have given Solventum Corporation (NYSE:SOLV) an average rating of Hold and a 12-month median price target of $82.83, reflecting a 25.37% upside potential from the current price of $66.07 as of April 29.