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In a challenging market environment, Avantor Inc (NYSE:AVTR)’s stock has touched a 52-week low, dipping to $17.02. The $11.7 billion market cap company, which generates annual revenues of $6.8 billion, appears undervalued according to InvestingPro Fair Value analysis. The scientific and healthcare product company has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decrease of 30%. InvestingPro analysis shows the stock’s RSI indicates oversold conditions, while analyst targets suggest up to 44% potential upside. Investors have shown concern as the stock struggles to regain momentum, marking a notable low point for the company amidst broader economic pressures. The current price level represents a critical juncture for Avantor as market participants watch closely for signs of recovery or further decline. Discover 6 more exclusive ProTips and comprehensive valuation metrics with InvestingPro.
In other recent news, Avantor, Inc. reported its fourth-quarter 2024 earnings, which exceeded expectations with an adjusted earnings per share of $0.27, compared to the analyst estimate of $0.26. However, the company fell short on revenue, reporting $1.69 billion against the anticipated $1.71 billion, marking a 2% year-over-year decrease. RBC Capital Markets reduced Avantor’s price target from $33 to $31, maintaining an Outperform rating, citing strong internal operations despite market skepticism. Bernstein also adjusted its price target for Avantor to $22 from $24.50, maintaining a Market Perform rating due to underperformance in the Laboratory Solutions segment. Stifel reduced its price target to $26 from $28 but upheld a Buy rating, noting Avantor’s ambitious 2025 EBITDA goals and strategic strengths. Despite challenges, the company demonstrated significant operational expense control and a strong free cash flow conversion of 110%, aiding debt reduction efforts. Avantor’s bioprocessing platform showed high-single-digit growth, with expectations for continued strength. The company reported full-year 2024 net sales of $6.78 billion, a 3% decrease from the previous year, with an adjusted EBITDA margin of 17.7%.
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