Avantor shares target lifted to $27.50 on robust bioprocessing growth

EditorLina Guerrero
Published 26/07/2024, 22:08
AVTR
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In other recent news, Avantor (NYSE:AVTR), Inc. reported its first-quarter results for 2024, noting a revenue of $1.68 billion, despite a 6.3% dip in organic growth. The company's new operating model, consisting of Laboratory Solutions and Bioscience Production, has been key in driving commercial momentum and operational efficiencies. Despite market conditions, Avantor has maintained its full-year guidance, with anticipated organic revenue growth between -2% and +1%.

The company also projects an adjusted EBITDA margin between 17.4% and 17.9%, with an adjusted EPS of $0.96 to $1.04. Free cash flow performance is expected to range from $600 million to $650 million, excluding costs from the cost transformation initiative. The firm anticipates at least $75 million in savings in 2024 through its cost transformation efforts.

Notably, Avantor's consumables, chemicals, and services segment performed better than expected, indicating improved inventory health and customer engagement. Despite cautious capital spending leading to a slight decline in revenue, Avantor remains confident in its ability to navigate market uncertainties and is well-positioned for future growth. These recent developments underscore the company's commitment to long-term growth, profitability, and financial stability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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