Update shared on 28 Nov 2025
Analysts have lowered their price target for Avantor from $14 to $12 per share, citing a weak quarter, reduced guidance, and ongoing execution risks as primary concerns behind the updated outlook.
Analyst Commentary
Bullish Takeaways- Bullish analysts have raised price targets ahead of quarterly results, reflecting improved confidence in Avantor’s long-term positioning despite current volatility.
- Revisions to financial models suggest expectations for a recovery or stabilization in relevant end markets. This supports optimism for medium-term trends.
- Some analysts maintain outperform ratings, indicating continued belief in Avantor’s strategic direction and potential upside from its updated outlook.
- Bearish analysts point to a weak quarter and reduced forward guidance, raising concerns about the company’s ability to deliver predictable growth.
- Execution risks remain a notable worry. Several downgrades cite limited turnaround visibility and operational headwinds, particularly in process chemicals.
- There are concerns over Avantor’s strategic review process and its lack of commitment to near-term earnings and sales growth, which clouds valuation clarity.
- Ongoing uncertainty regarding the resolution of what are perceived to be transitory but impactful business challenges contributes to a cautious stance on the stock.
What's in the News
- Raymond James downgraded Avantor to Market Perform from Outperform, citing a frustrating quarter, reduced guidance, and execution risks (Raymond James research note).
- Avantor announced revised 2025 earnings guidance, now expecting full-year organic revenue growth between negative 3.5% and negative 2.5%.
- A securities fraud class action lawsuit has been filed against Avantor, alleging that the company misled investors about its competitive position and downplayed the effects of increased competition over several quarters.
- The company launched a $500 million share repurchase program to be financed through available cash or existing borrowing facilities.
- Avantor unveiled a strategic partnership with BlueWhale Bio to accelerate manufacturing scale-up for cell therapy applications using BlueWhale Bio’s CDNP platform.
Valuation Changes
- Consensus Analyst Price Target: Lowered to $12 per share, down from $14.
- Discount Rate: Increased slightly to 8.87% compared to the previous 8.86%.
- Revenue Growth: Remains essentially unchanged at approximately 2.0% year-over-year.
- Net Profit Margin: Stable at 12.68%, with no notable change from prior estimates.
- Future P/E: Decreased marginally to 13.60x from 13.62x.
Disclaimer
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