Avantor’s Performance Challenges and Uncertain Outlook Lead to Hold Rating

In a report released today, Tejas Savant from Morgan Stanley downgraded Avantor (AVTR – Research Report) to a Hold, with a price target of $15.00.

Tejas Savant has given his Hold rating due to a combination of factors impacting Avantor’s recent performance and outlook. The company’s first-quarter revenue fell short of expectations, primarily due to underperformance in both the Lab Solutions and Bioscience Production segments. The Lab Solutions segment was particularly affected by policy changes in the U.S., leading to softness in the education and government end markets.
Additionally, the company’s guidance was adjusted downward, reflecting challenges such as modest demand for cleanroom consumables and uncertainties in U.S. academic funding. While the valuation appears reasonable, the potential impact of tariffs and a conservative outlook on market recovery contribute to a cautious stance. As a result, Tejas Savant views the stock as range-bound until there is more clarity on these issues.

In another report released yesterday, Stifel Nicolaus also downgraded the stock to a Hold with a $14.00 price target.

Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AVTR in relation to earlier this year.