Laurence Alexander, an analyst from Jefferies, maintained the Buy rating on Avient (AVNT – Research Report). The associated price target is $60.00.
Laurence Alexander has given his Buy rating due to a combination of factors that highlight Avient’s potential for growth and resilience. In the near term, despite facing challenges from cyclical end-markets, Avient’s stable sectors such as packaging, healthcare, and defense are expected to see volume growth, supported by new product introductions and market share gains. This growth is anticipated to offset some of the softer demand in more cyclical areas, leading to a positive impact on EBITDA and EPS.
In the longer term, Avient’s business model is expected to demonstrate resilience due to its short-cycle nature and strong pricing power. The company’s strategic focus on innovation and secular trends, such as defense spending and efficient power transmission, is projected to drive growth above GDP levels. Laurence Alexander anticipates that these factors, along with a sustained innovation cycle, could significantly enhance Avient’s earnings power and support a higher share price, making the stock an attractive buy for investors.