Avantor Inc. (AVTR) Stock Forecast & Price Target

Avantor Inc. has demonstrated a robust potential for revenue growth through recent contract renegotiations that yielded $100 million in market share gains, contributing to enhanced fixed cost absorption and overall profitability trajectory. With strong fundamentals in the biopharma and healthcare sectors, the company is positioned to enhance its margins and align more closely with industry peers, indicating future multiple expansion opportunities. Additionally, ongoing multi-year cost-cutting initiatives are expected to exceed $250 million by the end of 2025, further supporting the company’s financial stability and growth prospects.

The outlook for Avantor's FY25 organic revenue growth has been significantly downgraded due to ongoing customer-specific challenges in bioprocessing, now expected to range from -2% to 0%, which reflects a more pessimistic forecast than previously provided. In 2Q, Avantor's organic revenue decreased by 1% to $1.58 billion, coupled with adjusted EBITDA margins that fell short of market expectations, indicating consistent operational struggles and an inability to meet financial targets. Furthermore, significant headwinds from major bioprocess customers, including setbacks in gene therapy and mRNA platforms, alongside expected declines in silicone revenues, suggest that the negative pressures on revenue and margins are likely to persist into 2026.