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Investing.com - Wolfe Research maintained its Peerperform rating on Avantor Inc . (NYSE:AVTR), a $8.6 billion life sciences company with annual revenues of $6.7 billion, on Monday, following leadership changes. According to InvestingPro analysis, the company maintains a strong financial health score and has been consistently profitable over the last twelve months.
The research firm’s decision comes as Avantor transitions to a new chief executive, Mr. Ligner, whose background includes extensive bioprocessing experience, an area Wolfe Research identifies as the highest growth segment of Avantor’s portfolio. Trading at a P/E ratio of 12.7 and near its 52-week low, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued.
Wolfe Research noted that while Ligner’s bioprocessing expertise aligns with Avantor’s strategic priorities, his lack of public company CEO experience might draw investor scrutiny, particularly regarding communication with Wall Street and execution of financial targets.
The absence of updated guidance accompanying the leadership change was described as "unsurprising" by Wolfe Research, though the firm cautioned this omission would likely "raise questions" among investors.
Wolfe Research specifically pointed out that investors typically respond negatively to such lack of forward guidance during executive transitions at public companies.
In other recent news, Avantor Inc. has announced the appointment of Emmanuel Ligner as its new President and CEO, effective August 18, 2025. This leadership change follows the departure of Michael Stubblefield and is seen as a strategic move, given Ligner’s extensive experience in the life sciences industry. Meanwhile, Goldman Sachs has downgraded Avantor’s stock rating from ’Buy’ to ’Neutral’ and reduced the price target to $14.00 due to concerns over the company’s Laboratory Solutions segment. This segment, which makes up a significant portion of Avantor’s business, faces challenges that could impact growth. On the other hand, KeyBanc has maintained an Overweight rating with a price target of $30.00, citing potential catalysts like leadership changes and possible mergers. Raymond (NSE:RYMD) James also reiterated its Outperform rating with a $16.00 price target, emphasizing the value in Avantor’s bioprocessing and silicones segments. These recent developments highlight the varied perspectives among analysts about Avantor’s current and future position in the market.
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