JPMorgan Downgrades Avantor Inc. (AVTR) to Neutral

JPMorgan analyst Casey Woodring downgraded Avantor Inc. (NYSE: AVTR) from Overweight to Neutral with a price target of $12.00 (from $14.00).

The analyst comments: "As we highlighted in our first take, AVTR reported a mixed 3Q, with top-line declines ~below the Street (-4.7% organic vs. Street of -3.0%) and guide of -4.0% to -2.0%) but adj. EBITDA margin above the Street (16.5% vs. Street of 16.3%, implied guide of low -16% range), translating to in-line adj. EPS ($0.22 vs. Street of $0.22). Headwinds in the quarter came from both BPS (-4.3% organic vs. JPMe of -3.0%, guide of ~-3.0% decline) and LSS (-4.9% organic vs. JPMe of -3.0%, guide of -3.0%). In BPS, AVTR called out bioprocessing declines of -LSD vs. company guide of flat as process chemicals growth of +LSD came in below expectations as business was negatively impacted by incremental operational headwinds impacting throughput (outside of the headwind from the planned maintenance facility called out last quarter which has been resolved). Additionally, controlled environment consumables within bioprocessing also underperformed company expectations, declining -MSD driven by competitive pressure and commercial execution."

For an analyst ratings summary and ratings history on Avantor Inc. click here. For more ratings news on Avantor Inc. click here.

Shares of Avantor Inc. closed at $11.58 yesterday.

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