In a report released today, Eve Burstein from Bernstein maintained a Hold rating on Avantor (AVTR – Research Report), with a price target of $22.00.
Eve Burstein has given her Hold rating due to a combination of factors influencing Avantor’s financial performance. One of the main concerns highlighted was the underperformance of Avantor’s Laboratory Solutions segment, which failed to meet expectations and showed a year-over-year decline. This weakness suggests potential challenges in regaining market share, particularly against competitors like Thermo, raising questions about the company’s growth trajectory.
Despite these concerns, there are positive aspects that justify the Hold rating. Avantor demonstrated strong operational expense management, achieving a better-than-expected adjusted EBITDA despite missing revenue targets. Additionally, the company showed robust free cash flow conversion, which facilitated debt reduction. These positives provide some balance against the negatives, leading to a more cautious yet balanced outlook on the stock.