Avantor (AVTR) Valuation Check After a Year of Sharp Share Price Declines

Avantor (AVTR) has been grinding through a tough stretch, with the share price sliding over the past year even as revenue edges higher. That disconnect sets up an interesting value conversation for patient investors. See our latest analysis for Avantor. At around $11.28 per share, Avantor’s 1 year total shareholder return of roughly negative 47 percent tells you sentiment has been reset, and the slightly negative 3 month share price return suggests momentum is still fading, even as fundamentals slowly improve. If Avantor’s reset has you reassessing your watchlist, this could be a good moment to contrast it with other healthcare names. You can use healthcare stocks as a fresh hunting ground. With shares deeply underwater despite modest growth and a small discount to analyst targets, investors face a key question: is Avantor now a mispriced turnaround story, or simply a stock correctly reflecting muted future growth? Most Popular Narrative Narrative: 17.3% Undervalued With Avantor closing at $11.28 and the most followed narrative pointing to fair value in the mid teens, the gap hinges on how its turnaround unfolds. The continued acceleration of biologics, gene therapies, and personalized medicine creates an increasing need for specialized and single-use solutions, an area where Avantor is investing in market-leading platforms and expanding innovation. This positions the company to benefit from secular end-market growth and product mix shift toward higher-margin segments, supporting margin and earnings growth. Read the complete narrative. Want to see the math behind that optimism? The narrative leans on modest growth, leaner margins, and a richer future earnings multiple than today. Curious which specific profit and revenue paths have to line up to unlock that upside? The full story lays out the precise assumptions behind the fair value call. Result: Fair Value of $13.64 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, persistent bioprocessing softness and aggressive pricing to retain contracts could erode margins further, undermining both the turnaround case and valuation upside. Find out about the key risks to this Avantor narrative. Build Your Own Avantor Narrative If you see the outlook differently or want to pressure test the assumptions yourself, you can build a custom narrative in under three minutes, 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? Before you move on, lock in your next potential win by scanning fresh stock ideas now, while others stay fixated on yesterday’s headlines. Capitalize on quality bargains by using these 901 undervalued stocks based on cash flows to spot companies where cash flow strength and valuation still work in your favor. Position yourself for the next wave of innovation by reviewing these 24 AI penny stocks targeting businesses at the forefront of intelligent automation and machine learning. Strengthen your income stream by focusing on these 10 dividend stocks with yields > 3% that combine attractive yields with sustainable payout profiles. 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.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech