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Evaluating Avient (AVNT) After Cost Cuts and the Dyneema Deal: What’s Priced Into the Stock?

Simply Wall St · 1d ago

Avient (AVNT) just doubled down on its long term playbook by cutting costs, raising prices where it can, and closing the DSM protective materials deal that brings the Dyneema brand into its portfolio.

See our latest analysis for Avient.

The market reaction has been cautious so far, with the share price at $31.51 and a 1 month share price return of 5.7 percent. However, a year to date share price return of negative 21.7 percent and a 1 year total shareholder return of negative 32.4 percent suggest sentiment is still repairing rather than fully turning.

If you like Avient’s repositioning but want more ideas in the same space, it could be a good moment to scan other aerospace and defense stocks that lean on advanced materials and performance applications.

With earnings recovering, a 44 percent estimated intrinsic discount, and analysts targeting 30 percent upside, is Avient still trading as a cyclical laggard, or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 23.1% Undervalued

With Avient last closing at $31.51 against a narrative fair value of $41, the valuation case hangs on how far its mix shift can stretch margins.

Continued shift in customer and regulatory preferences toward eco friendly lightweight polymers and sustainable materials, along with Avient's portfolio transformation and innovation in low energy, circular products, supports future revenue expansion and structural improvement in EBITDA margins.

Read the complete narrative.

Want to see the math behind this gap, from revenue assumptions to profit uplift and future earnings multiple expectations, and how they combine into that fair value estimate?

Result: Fair Value of $41 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained weakness in consumer end markets or sharper than expected raw material cost inflation could quickly compress margins and stall the anticipated earnings recovery.

Find out about the key risks to this Avient narrative.

Build Your Own Avient Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can build a custom view in just a few minutes: Do it your way.

A great starting point for your Avient research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.