Stifel lowers Avantor stock price target to $12 on bioprocess growth concerns

Investing.com - Stifel lowered its price target on Avantor Inc . (NYSE:AVTR) to $12.00 from $14.00 on Monday, while maintaining a Hold rating on the stock. The company, currently trading at a P/E ratio of 11.27, appears undervalued according to InvestingPro analysis.

The price target reduction follows Avantor’s quarterly earnings miss and lowered organic growth and margin outlook. Unlike the previous quarter, the company also trimmed its earnings per share guidance. The stock has reflected these challenges, dropping 18.8% in the past week and currently trading near its 52-week low of $10.82.

Stifel noted that growth in bioprocess, described as "the biggest area of hope in Tools," is lagging behind expectations. The firm also pointed out that while tariff impacts were offset during the quarter, they remain a "moving target" for the company.

The research firm indicated that Avantor appears to have made pricing concessions to protect market share during major contract renegotiations. Management remains "in limbo" until August 18, according to Stifel’s analysis.

Despite Avantor being "clearly the cheapest stock in the group" with potential for a turnaround story next year under a refreshed CEO, Stifel maintained that there are "too many variables" and too many other high-quality Tools companies trading at discounted multiples to favor Avantor at present. With a FAIR financial health score from InvestingPro, which offers 10+ additional exclusive insights for this stock, investors should carefully weigh the risks and opportunities.

In other recent news, Avantor Inc. reported its financial results for the second quarter of 2025. The company experienced a slight miss in earnings per share (EPS) compared to analyst expectations, although its revenue managed to exceed forecasts. This mixed performance has been a focal point for investors. Additionally, UBS lowered its price target for Avantor to $13.00 from $14.00 while maintaining a Neutral rating. UBS cited concerns over Avantor’s significant exposure to market headwinds and channel share risks that could impact sales growth. These developments highlight the challenges Avantor faces in aligning with industry peers. Investors and analysts are closely monitoring these recent updates for future implications.

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