AVTR - Avantor: Recurrent Revenue And M&A Could Push The Stock Price Up

• Avantor sells products and services to the biopharma, healthcare, education, government, and advanced technologies & applied materials industries.
• In my view, what really matters is that Avantor expects $1 billion FCF, positive adjusted EPS close to $1.4-$1.5, and an EBITDA margin approaching 21%.
• If management signs new deals, and successfully integrates new companies, I would expect revenue to trend north.
• Let’s note that the company does not manufacture the majority of its products, so it is quite important that Avantor signs strong contracts with as many suppliers as possible in the future.

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