Vincent Andrews, an analyst from Morgan Stanley, maintained the Hold rating on Avient. 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 surrounding Avient’s financial performance and future outlook. The company’s second-quarter results were slightly better than expected, with sales and operating income surpassing both Morgan Stanley’s estimates and consensus figures. Despite this, the full-year guidance was only slightly adjusted, with a narrow range that suggests limited upside potential.
Avient’s performance in certain segments, such as Colors Additives and Inks, showed positive margin expansion due to cost reductions and productivity improvements. However, there were challenges in the Specialty Engineered Materials segment, where operating income fell short of expectations due to lower margins. While there is anticipated growth in defense and healthcare, and efforts to reduce debt, the overall outlook remains cautious, leading to the Hold rating.
In another report released today, TR | OpenAI – 4o also downgraded the stock to a Hold with a $37.00 price target.