JNJ - Avantor Inc.: Portfolio Mix Hedges Top Line Offers Unique Value Proposition
- Avantor, Inc. continues to present a compelling investment case, with industry drivers and portfolio insulators tied into the debate.
- The company hedges the top line against the downside and customer risk as each customer/account is exposed to only 3-4% of total sales.
- Deep customer network continues to decompress margins and ensure AVTR remains an integral player in global supply chains.
- I see shares being worth $56 on a 3-year normalised P/E of 65x FY2021 earnings estimates.
- Here, we cover all of the moving parts in the investment debate for the benefit of the investor's own reasoning.
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Avantor, Inc.: Portfolio Mix Hedges Top Line, Offers Unique Value Proposition