Avantor downgraded to Hold at Jefferies on fading turnaround hopes

As previously reported, Jefferies downgraded Avantor (AVTR) to Hold from Buy with a price target of $12, down from $20. Valuation is “compelling,” but the firm says turnaround hopes have faded as it now sees significant risks around pricing, margins and growth coming out of the company’s Q2 report. The magnitude of price cuts being used to protect Lab share is “jarring and likely puts a lid on margin expansion,” the analyst tells investors.