Avantor (AVTR – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst on February 7. Analyst Tycho Peterson from Jefferies reiterated a Buy rating on the stock and has a $26.00 price target.
Tycho Peterson has given his Buy rating due to a combination of factors highlighting Avantor’s potential for growth and stability. The company’s valuation is appealing, trading at a significant discount compared to its peers, suggesting limited downside risk. Furthermore, Avantor’s prudent guidance for 2025 sets a realistic foundation, with anticipated improvements in core growth and bioproduction margins, which are expected to bolster overall performance.
Additionally, Avantor’s financial health is noteworthy. The company has successfully reduced its net leverage, and with a focus on maintaining leverage below 3x, it is positioned for sustainable operations. Peterson also notes the robust bioprocess orders and impressive cost-saving measures, which exceed initial expectations. These elements, combined with encouraging trends in biopharma and strategic leadership changes, contribute to a favorable outlook for Avantor, justifying the Buy rating.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $26.00 price target.