Assessing Avantor (AVTR) Valuation Following Recent Share Price Declines

Avantor (AVTR) shares have seen a noticeable shift recently, with investors keeping an eye on the stock after a decline over the past month. This move comes amid ongoing changes in the broader life sciences sector.

See our latest analysis for Avantor.

Avantor’s share price has had a challenging run, with a 30-day share price return of -17.95% and a year-to-date return of -46.32%. This reflects fading momentum and cautious sentiment in the life sciences sector. Over the past year, the total shareholder return stands at -45.13%, highlighting persistent headwinds even as the company navigates ongoing industry shifts.

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The question now is whether Avantor’s steep drop has left its shares undervalued, potentially inviting bargain hunters, or if the market has already factored in all the challenges and future upside. Is there a genuine buying opportunity, or is future growth already included in the current price?

Most Popular Narrative: 16.6% Undervalued

Compared to Avantor’s last close at $11.38, the most widely followed narrative estimates fair value at $13.64, which is a significant premium. With the gap between current price and valuation target, investor debate is heating up about what could drive a turnaround.

The continued acceleration of biologics, gene therapies, and personalized medicine creates an increasing need for specialized and single-use solutions. Avantor is investing in market-leading platforms and expanding innovation, which positions the company to benefit from secular end-market growth and a product mix shift toward higher-margin segments, supporting margin and earnings growth.

Read the complete narrative.

Want to know the numbers behind this bullish outlook? The narrative hinges on aggressive assumptions for earnings recovery and a valuation multiple usually reserved for faster-growing companies. Ready to see what’s fueling this ambitious price target? Don’t miss out on the details that could shift your view.

Result: Fair Value of $13.64 (UNDERVALUED)

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

However, lingering margin pressures and ongoing bioprocessing setbacks could easily derail even the most optimistic turnaround scenario for Avantor in the near term.

Find out about the key risks to this Avantor narrative.

Build Your Own Avantor Narrative

If you see things differently or want to dig into the numbers yourself, you can quickly build your own take in just a few 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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