A Look at Avantor (AVTR) Valuation Following Tough Q3 Results, Guidance Cut, and New Legal Challenge

Avantor (AVTR) came under the spotlight after reporting a tough third quarter, with sales slipping compared to last year and a substantial net loss tied to an impairment charge.

Adding to the challenges, the company’s new outlook for the rest of 2025 lands below what many expected. Several major contract losses were also revealed. To complicate matters, shareholders have filed a securities fraud class action lawsuit, claiming Avantor’s leadership understated the competitive pressures it was facing and painted too optimistic a picture for investors.

See our latest analysis for Avantor.

Avantor’s share price has been hammered this year following a wave of downbeat news, with big single-day drops after each disappointing earnings report and guidance cut. News of the recent securities lawsuit has also added further pressure. With the latest close at $11.55, the one-year total shareholder return sits at negative 48.9%, a clear sign that investor sentiment has shifted from cautious optimism to a strong risk-off stance over both the short and long term.

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The big question now is whether Avantor’s battered share price finally reflects all the bad news, or if there is still more pain ahead and investors should wait for clearer signs of future growth.

Most Popular Narrative: 16.3% Undervalued

Avantor’s most widely followed narrative puts fair value at $13.80 per share, which is over $2 above the latest close. This reflects a belief in meaningful upside, even after a rough twelve months for the business and stock.

The global growth in demand for biopharmaceuticals and healthcare solutions is being reinforced by Avantor's major contract wins and extensions with large pharma and biotech consortia. These positions Avantor to capture greater market share as end-market funding and patient procedures return to normalized or higher levels, creating sustained potential for above-market revenue growth.

Read the complete narrative.

Is this valuation really realistic? The narrative is built on projections for steady industry demand, big cost savings, and a profitability rebound, along with a future profit multiple that surpasses current levels. The precise numbers behind this call might just surprise you.

Result: Fair Value of $13.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent competitive pressures and flat bioprocessing revenues could further challenge Avantor’s recovery, so a swift rebound is far from guaranteed.

Find out about the key risks to this Avantor narrative.

Build Your Own Avantor Narrative

If the current outlook does not match your perspective, take the opportunity to dig into the numbers on your own terms. You can shape your own narrative in minutes. Do it your way.

A great starting point for your Avantor research is our analysis highlighting 3 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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