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Assessing Avantor (AVTR) Valuation After Recent Share Price Stabilization And Longer Term Weakness

Simply Wall St · 6d ago

Avantor (AVTR) is back on investors’ radars after recent share-price moves, with the stock roughly flat over the past day, modestly higher over the past month, yet showing weaker performance across the past 3 months and year.

See our latest analysis for Avantor.

What really stands out is the contrast between Avantor’s recent 30 day share price return of 4.85% and its 1 year total shareholder return of a 47.72% decline. This suggests that recent momentum is building off a much weaker longer term experience.

If Avantor’s moves have you reassessing the sector, it could be a good moment to see what else is on your radar across healthcare stocks.

With Avantor trading at $11.46, alongside an 8.9% intrinsic discount estimate and a 16.2% gap to analyst targets, the key question is whether this weakness signals an undervalued entry point or whether markets are already pricing in future growth.

Most Popular Narrative: 16% Undervalued

With Avantor last closing at $11.46 against a fair value estimate of about $13.64, the prevailing narrative frames the shares as modestly mispriced and builds a case around how earnings power could evolve.

The analysts have a consensus price target of $14.118 for Avantor based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $19.0, and the most bearish reporting a price target of just $12.0.

Read the complete narrative.

Curious what underpins that valuation gap? The narrative leans on modest revenue expansion, slimmer margins, and a future earnings multiple that implies a very different earnings mix from today. The full set of growth and profitability assumptions is where the story really gets interesting.

Result: Fair Value of $13.64 (UNDERVALUED)

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

However, there are still clear pressure points, including weak organic revenue guidance for 2025 and ongoing margin strain from competitive pricing and bioprocessing setbacks, that could limit any re rating.

Find out about the key risks to this Avantor narrative.

Build Your Own Avantor Narrative

If you see the data differently or want to stress test your own assumptions, you can build a tailored Avantor story in just a few minutes, starting with Do it your way.

A great starting point for your Avantor research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Avantor has you thinking about what else might be out there, do not stop here. Broaden your watchlist with other clear, data driven opportunities.

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.