Morgan Stanley analyst Tejas Savant maintained a Buy rating on Avantor (AVTR – Research Report) today and set a price target of $25.00.
Tejas Savant has given his Buy rating due to a combination of factors influencing Avantor’s financial performance and future prospects. The company has shown a return to organic growth driven by strong performance in the bioprocessing segment, which reported a 4% growth and demonstrated continued momentum. This growth was supported by robust order strength despite challenges in other markets. Additionally, Avantor’s adjusted gross margin remained stable, benefiting from productivity efforts that helped offset negative impacts such as inflation and fixed cost leverage.
Furthermore, the company’s free cash flow conversion was impressive, contributing positively to its financial health. Although the initial guidance suggests only a gradual recovery in bioprocessing, the conservative assumptions leave room for potential upside as market conditions improve. Overall, the risk-reward profile on the current pullback appears favorable, supporting Savant’s Buy rating for Avantor.
In another report released on February 7, Barclays also maintained a Buy rating on the stock with a $23.00 price target.