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Investing.com - RBC Capital has lowered its price target on Avantor Inc . (NYSE:AVTR) to $17.00 from $20.00 while maintaining an Outperform rating on the stock. The company, currently valued at $7.8 billion, has seen its shares decline sharply, trading near its 52-week low of $10.82 with an 18.8% drop in the past week. According to InvestingPro analysis, the stock appears undervalued at current levels.
The price target reduction follows Avantor’s missed second-quarter 2025 earnings and lowered full-year 2025 guidance.
RBC Capital noted that revenue headwinds affecting Avantor in the current quarter are likely to persist through 2026, positioning the company as "one of the last Integrators to benefit from an end-market rebound."
The firm’s adjusted price target reflects a higher relative multiple discount to peers and lower earnings per share estimates for Avantor.
Despite near-term challenges that prompted caution about aggressive positioning following the stock’s selloff, RBC Capital maintains a long-term belief in multiple expansion potential for Avantor shares.
In other recent news, Avantor Inc. reported its financial results for the second quarter of 2025, showing a mixed performance. The company slightly missed earnings per share (EPS) expectations, although its revenue exceeded forecasts. Following this, Stifel lowered its price target for Avantor to $12, citing concerns over bioprocess growth and a trimmed earnings per share guidance. Stifel maintained a Hold rating on the stock. Similarly, UBS reduced its price target to $13, maintaining a Neutral rating due to concerns about Avantor’s exposure to market headwinds and channel share risks. These developments highlight the challenges Avantor faces in maintaining its growth trajectory amidst external pressures.
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