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Investing.com - Raymond James downgraded Avantor Inc. (NYSE:AVTR) from Outperform to Market Perform following what it described as "yet another frustrating quarter" for the life sciences company. The stock, currently trading at $11.68, has plummeted 22.55% over the past week and 44.57% year-to-date, according to InvestingPro data.
The downgrade comes after Avantor reported quarterly results that missed revenue expectations but maintained earnings per share in line with forecasts through better expense management. The company, with a market capitalization of approximately $8 billion, has seen revenue decline by 3.59% over the last twelve months.
Raymond James noted that Avantor significantly reduced its guidance, potentially establishing a new baseline but delivering a "major hit" to the outlook for 2025 through 2027, with approximately 10% cuts to EPS forecasts for 2026 and 2027. InvestingPro analysis indicates the stock is currently undervalued compared to its Fair Value, with 13 analysts having revised their earnings downwards for the upcoming period.
The research firm acknowledged that Avantor’s current business challenges are "addressable over time" but cited concerns about execution risks and uncertain timelines for improvement as key factors behind the rating change.
While Raymond James continues to believe Avantor’s Bioproduction and Lab Solutions divisions "hold value above current trading ranges," it stated that the health of these businesses lacks visibility within a timeframe that would warrant maintaining a more positive outlook.
In other recent news, Avantor Inc . reported its third-quarter earnings for 2025, which showed a slight miss in both earnings per share and revenue compared to forecasts. The company posted an EPS of $0.22, just below the anticipated $0.23, and generated $1.62 billion in revenue, missing the forecasted $1.65 billion. This comes amid the company’s introduction of new bioprocessing solutions aimed at enhancing operations, including a suite of pre-engineered sterile sampling and PUPSIT assemblies. Meanwhile, JPMorgan downgraded Avantor’s stock rating from Overweight to Neutral, citing mixed third-quarter results and a decline in organic revenue of 4.7%, which was below expectations. Additionally, BofA Securities lowered its price target for Avantor to $14.00 from $16.50, while maintaining a Buy rating, due to concerns over ongoing pricing challenges. Despite these challenges, BofA remains optimistic about Avantor’s long-term prospects. These developments reflect the complexities and strategic hurdles Avantor faces in the current market environment.
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