Avantor Inc. (AVTR) Stock Forecast & Price Target

Avantor Inc. has recently achieved a significant $100 million in market share gains from contract renegotiations, which are projected to contribute to long-term profitability through enhanced fixed cost absorption despite lower pricing. The company operates in the lucrative healthcare sector, with management optimistic about expanding margins in line with industry peers, positioning itself for multiple expansion over time. Additionally, the firm's focus on cost-cutting initiatives is expected to generate substantial savings, with projections of over $400 million in reductions by the end of 2027, further supporting a positive financial outlook.

Avantor Inc. has revised its outlook for FY25 organic revenue growth down to a range of -2% to 0%, reflecting specific customer challenges in bioprocessing and a decline in revenue reported for 2Q25. The company's 2Q organic revenue fell by 1% to $1.58 billion, and adjusted EBITDA of $280 million was below expectations, resulting in margins of 16.6%, which failed to meet the consensus of 17.3%. Additionally, significant setbacks faced by three major bioprocess customers have created ongoing headwinds, leading to a lowered guidance for EPS and a negative sentiment about growth persisting through 2026.