Assessing Avantor (AVTR) Valuation as Class Action Deadline and Downgrade Weigh on Sentiment
Avantor (AVTR) is back in focus as a securities fraud class action deadline approaches, and a recent downgrade from BofA highlights muted backlog conversion, equipment reliability concerns, and tougher competition that are pressuring near term sentiment.
See our latest analysis for Avantor.
The stock has been under steady pressure, with the latest share price at $11.10 and a year-to-date share price return of negative 47.64 percent. The 1-year total shareholder return of negative 47.42 percent suggests sentiment has been fading despite incremental news such as the recent board appointment and the class action headline risk.
If Avantor's recent swings have you rethinking your exposure to life sciences tools, this could be a good moment to explore healthcare stocks as alternative ideas taking shape across the sector.
With shares trading at a double digit discount to Wall Street targets but weighed down by shrinking returns and legal overhangs, is Avantor a contrarian entry point, or is the market correctly discounting its future growth?
Most Popular Narrative: 18.6% Undervalued
With Avantor closing at $11.10 versus a narrative fair value near the mid teens, the valuation debate hinges on how quickly its turnaround gains traction.
The analysts have a consensus price target of $14.118 for Avantor based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $19.0, and the most bearish reporting a price target of just $12.0.
Want to see how modest revenue growth, thinner margins and a richer future earnings multiple can still justify upside from here? The full narrative lays out the detailed forecasts, the cash flow math, and the valuation bridge that connects today’s loss making reality to tomorrow’s potential rerating.
Result: Fair Value of $13.64 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent bioprocessing headwinds and aggressive pricing to defend key contracts could keep margins compressed and delay any meaningful turnaround or rerating.
Find out about the key risks to this Avantor narrative.
Build Your Own Avantor Narrative
If you see Avantor’s story differently or want to stress test the numbers yourself, you can build a fresh narrative in minutes: Do it your way.
A great starting point for your Avantor research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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