BofA Securities lowered its price target on Avantor Inc. to $11.00 from $13.00 and left its rating on the stock at Neutral. The newly published target sits modestly above Avantor's most recent trading level of $9.43, a share price that has fallen by about 40% over the past year.
The cut to BofA's target came in the wake of Avantor's fourth-quarter earnings discussion, after which the stock plunged roughly 17% during the trading day as the company issued fiscal 2026 guidance that fell short of market expectations. Data cited from InvestingPro indicate that 16 analysts have adjusted their forthcoming earnings projections downward recently.
BofA underscored limited clarity around a possible recovery for Avantor, noting that company management could not point to an identifiable timeline for improvement in performance, whether in late 2026 or thereafter. Reflecting lower growth expectations and a more conservative view on valuation, the firm revised the multiple it applies in its model - now using an 11x 2027 EV/EBITDA multiple versus the prior 12x multiple.
Despite trimming the price target and lowering the valuation multiple, BofA retained a Neutral rating on the shares pending concrete signs of business improvement or a durable recovery in results.
Separately, Avantor's reported fourth-quarter 2025 results showed adjusted earnings per share of $0.22, in line with analyst forecasts, while revenue came in at $1.66 billion, slightly above the $1.64 billion analysts had expected. Even with results that matched or topped consensus on the headline metrics, the stock moved notably lower in pre-market trading, a decline investors attributed to the company's forward guidance and broader market conditions.
These developments emphasize the immediate challenge Avantor faces: delivering a clearer path to growth or stabilization that would restore investor confidence. For now, the combination of softer guidance and downward revisions by multiple analysts has prompted at least one major broker to pare back its valuation and wait for evidence of improvement before changing its stance.
Summary
BofA lowered its Avantor price target to $11 from $13 and kept a Neutral rating after the company's Q4 results and cautious fiscal 2026 outlook, while Avantor reported Q4 adjusted EPS of $0.22 and revenue of $1.66 billion.
Key points
- BofA cut its price target to $11 and maintained a Neutral rating on Avantor.
- Avantor reported Q4 2025 adjusted EPS of $0.22 and revenue of $1.66 billion, beating revenue estimates.
- Investor sentiment was hit by weaker fiscal 2026 guidance, prompting a sharp intraday decline and multiple analyst downward revisions.
Risks and uncertainties
- Limited visibility on the timing of recovery, with management unable to provide a clear improvement timeline for late 2026 or beyond - impacts equity investors and market confidence.
- Analyst earnings revisions - 16 analysts have recently lowered earnings expectations, which may weigh on sector valuations and investor sentiment.
- Valuation compression as BofA reduced its EV/EBITDA multiple to 11x for 2027 from 12x, reflecting lower growth assumptions and signaling risk to downside if recovery stalls.