William Blair analyst Matt Larew has maintained their neutral stance on AVTR stock, giving a Hold rating on April 15.
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Matt Larew has given his Hold rating due to a combination of factors surrounding Avantor’s recent performance and strategic changes. The company’s first-quarter results fell short of both the firm’s and market expectations, with revenue and adjusted EBITDA missing estimates. This underperformance was primarily driven by weakness in the Laboratory Solutions segment, which saw a decline in organic growth, contrasting with the anticipated flat performance.
Additionally, Avantor’s guidance for 2025 has been lowered, reflecting a more cautious outlook on organic growth and EBITDA margins. The announcement of a CEO transition adds another layer of uncertainty, although the company is taking steps to address challenges by implementing a comprehensive strategy to revitalize its Lab Solutions business and expanding its cost savings program. These mixed signals contribute to the Hold rating, as the potential for improvement is tempered by current operational challenges.
In another report released on April 15, Bernstein also maintained a Hold rating on the stock with a $18.00 price target.
Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AVTR in relation to earlier this year.