Analysts have assigned an average price target of $13.60 for Avantor, Inc. (NYSE:AVTR), reflecting a cautious outlook on the company’s stock. According to data from Marketbeat, the consensus recommendation among the seventeen brokerages covering Avantor is “Hold.” This consensus includes one sell rating, thirteen hold ratings, and three buy ratings.
Recent reports from major financial institutions have contributed to this assessment. On October 30, 2023, JPMorgan Chase & Co. reiterated a “neutral” rating while lowering its target price for Avantor to $12.00, down from a previous estimate of $14.00. Similarly, UBS Group also set its target price at $12.00. TD Cowen followed suit, reducing its price target from $14.00 to $12.00 while maintaining a “hold” rating.
In a notable shift, Zacks Research upgraded Avantor from a “strong sell” to a “hold” rating on December 29, 2023. Meanwhile, Raymond James Financial downgraded the stock from an “outperform” to a “market perform” rating on November 4, 2023.
Institutional Investment Trends
Recent trading activity indicates significant interest from institutional investors. Northwestern Mutual Wealth Management Co. raised its stake in Avantor by an impressive 288.4% during the first quarter, now holding 1,701 shares valued at approximately $28,000. Vident Advisory LLC also purchased a new stake valued at about $419,000 in the same period.
The Royal Bank of Canada increased its holdings by 104.3%, acquiring an additional 104,022 shares to bring its total to 203,738 shares, valued at around $3.3 million. Other notable investors include Federation des caisses Desjardins du Quebec, which raised its holdings by 37.5%, and Adage Capital Partners GP L.L.C., which acquired a new position valued at $4.86 million. Collectively, institutional investors own 95.08% of Avantor’s stock.
Stock Performance and Financial Results
As of the latest trading session, Avantor’s shares opened at $12.09, reflecting a 1.5% decline. The stock has experienced a 1-year range, with a low of $10.62 and a high of $23.32. Financial metrics indicate a market capitalization of $8.24 billion, a debt-to-equity ratio of 0.65, and a current ratio of 1.49.
The company last reported its earnings on October 29, 2023, revealing an earnings per share (EPS) of $0.22, slightly below analysts’ expectations of $0.23. Avantor’s revenue for the quarter was $1.62 billion, falling short of the anticipated $1.65 billion. This performance represents a 5.3% decrease in revenue compared to the same quarter the previous year, where the company recorded an EPS of $0.26.
Looking ahead, Avantor has provided guidance for the fiscal year 2025, expecting an EPS range of $0.880 to $0.920. Analysts forecast that Avantor will achieve an EPS of $1.06 for the current fiscal year.
About Avantor, Inc.: Avantor is a global provider of mission-critical products and services, catering to sectors such as biopharma, healthcare, government, and advanced technologies. The company’s diverse product offerings include high-purity chemicals, biologics, lab equipment, and custom manufacturing services, essential for research, development, and production applications.
