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Avient’s Financial Outlook: Hold Rating Amid Weaker Performance and Market Challenges

Avient’s Financial Outlook: Hold Rating Amid Weaker Performance and Market Challenges

Vincent Andrews, an analyst from Morgan Stanley, maintained the Hold rating on Avient (AVNTResearch Report). The associated price target remains the same with $41.00.

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Vincent Andrews has given his Hold rating due to a combination of factors influencing Avient’s financial outlook. The revised earnings per share (EPS) and EBITDA estimates for the upcoming years indicate a downward adjustment, reflecting a weaker performance than initially expected. This adjustment is primarily attributed to a softer market environment as the company exits the second quarter, coupled with reduced demand in packaging and consumer markets, which impacts growth projections for Avient’s Color, Additives, and Inks segment.
Moreover, while there is a slight reduction in interest expenses anticipated due to debt repayment, these positive aspects are not sufficient to offset the broader challenges. The overall financial forecast suggests limited upside potential, justifying a Hold rating as investors may want to wait for clearer signs of recovery or growth before making further investment decisions.

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