Tycho Peterson, an analyst from Jefferies, maintained the Buy rating on Avantor (AVTR – Research Report). The associated price target was lowered to $20.00.
Tycho Peterson has given his Buy rating due to a combination of factors that suggest potential for Avantor’s stock despite recent challenges. The company’s valuation appears attractive, trading at a relatively low multiple, which could provide a cushion against further downside. Additionally, Avantor is taking proactive steps to address competitive pressures and operational inefficiencies, such as enhancing supply chain efficiency and digital capabilities, which may improve its market position over time.
Furthermore, while the company faces headwinds like lab share loss and potential impacts from China tariffs, these are being acknowledged and addressed by management. The anticipated cost savings and strategic initiatives could lead to improved financial performance in the future. Although the current environment is challenging, the potential appointment of a new CEO might also bring fresh strategic direction, contributing to a positive long-term outlook.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $17.00 price target.
AVTR’s price has also changed dramatically for the past six months – from $22.430 to $12.930, which is a -42.35% drop .