UBS lowers Avantor stock price target to $13 on bioprocessing headwinds

Published 04/08/2025, 15:32
UBS lowers Avantor stock price target to $13 on bioprocessing headwinds

Investing.com - UBS lowered its price target on Avantor Inc . (NYSE:AVTR) to $13.00 from $14.00 while maintaining a Neutral rating on the stock. The company currently trades at $11.49, with InvestingPro analysis suggesting the stock is undervalued despite trading near its 52-week low of $10.82.

The price target reduction reflects UBS’s concerns about Avantor’s outsized exposure to market headwinds and channel share risks that could potentially depress sales growth below industry peers by more than 2% over a cycle. This sentiment is echoed by 13 analysts who have recently revised their earnings expectations downward, according to InvestingPro data.

UBS noted that higher interest rates, higher target valuations, and a high relative debt burden could complicate Avantor’s efforts to structurally accelerate sales growth.

The firm pointed to Avantor’s below-market bioprocessing results as evidence supporting their thesis about the company’s growth challenges.

Recent guidance reductions in organic sales and adjusted EBITDA by Avantor further reinforced UBS’s cautious stance on the company’s near-term prospects.

In other recent news, Avantor Inc. announced its financial results for the second quarter of 2025. The company reported a slight miss in earnings per share (EPS) compared to analyst expectations. However, Avantor’s revenue surpassed forecasts, indicating a mixed performance for the quarter. The results led to a notable decline in the company’s stock price during pre-market trading. These developments are part of the latest updates surrounding Avantor’s financial activities. Analysts and investors are closely watching these figures as they assess the company’s financial health. The mixed results highlight the challenges and opportunities facing Avantor in the current market environment.

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