Avantor price target lowered to $16 from $24 at Raymond James

Raymond James lowered the firm’s price target on Avantor (AVTR) to $16 from $24 and keeps an Outperform rating on the shares. Avantor’s Q1 print was below consensus on both revenues and margins, and while some amount of nose was expected, the surprise shortfall in Bioscience Production and particularly bioprocessing, along with the acknowledgment of “competitive intensity” headwinds in Lab Solutions sparked material concern, the analyst tells investors in a research note. A change in leadership and signs of performance getting back on track offer potential avenues for recovery, the firm says, adding that it wonders whether a takeout or activist campaign might become more plausible at these discounted levels.