In a report released today, Daniel Brennan from TD Cowen maintained a Buy rating on Avantor (AVTR – Research Report), with a price target of $27.00.
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Daniel Brennan’s rating is based on an analysis of Avantor’s recent performance and future prospects. Despite a challenging market environment and a slight underperformance in organic growth guidance for 2025, Avantor has shown strong demand improvements and accelerated growth, particularly in the Bioprocess segment. Management has been efficient in executing cost-saving measures, resulting in robust free cash flow conversion and effective deleveraging.
Furthermore, Avantor’s year-over-year outlook compares favorably with its peers, boasting a leading organic growth rate and high earnings per share growth. The company’s strong bioprocess momentum, significant 4Q bookings, and improving lab business conditions provide a positive basis for the Buy rating. Brennan views the recent stock decline as an overreaction, suggesting it presents a good buying opportunity for investors.
In another report released on February 3, Barclays also maintained a Buy rating on the stock with a $26.00 price target.