AVTR - Avantor cut to Neutral at Citi on less compelling near-term outlook
Life sciences company Avantor (AVTR -3.7%) is trading lower after Citi downgraded the stock to Neutral from Buy, citing a limited opportunity for near-term topline growth and margin expansion, particularly in the second half of this year. The price target trimmed by more than a fifth to $38 per share implies a premium of ~11% to the last close. The analysts led by Patrick Donnelly cite “persistent inflation and adjacent pricing initiative lag time, and ongoing supply chain constraints” as the reasons for their downgrade. Donnelly and the team note that the company’s recent deal integration and execution have progressed below the initial guidance and highlight their concerns about future M&A activity as Avantor (NYSE:AVTR) focuses on deleveraging and integration efforts. Citi downgrade marks the first sell rating on Avantor (AVTR) according to data from Seeking Alpha Wall St. Analyst Ratings.
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Avantor cut to Neutral at Citi on less compelling near-term outlook