Avantor Analysts Increase Their Forecasts After Better-Than-Expected Earnings

Core Viewpoint - Avantor, Inc. reported better-than-expected second-quarter earnings, with adjusted earnings of 25 cents per share, surpassing market estimates of 23 cents per share, and sales of $1.703 billion, aligning with estimates [1] Financial Performance - The company achieved a sequential improvement in all key financial metrics, with a notable increase in bioprocessing revenue contributing to over 100 basis points of sequential Adjusted EBITDA margin expansion [1] - Free cash flow conversion exceeded 100% due to disciplined working capital management [1] Management Commentary - Michael Stubblefield, President and CEO, reaffirmed the fiscal year 2024 guidance and emphasized the focus on executing the long-term growth strategy and delivering value to customers and shareholders [1] Stock Performance - Following the earnings announcement, Avantor shares increased by 12.2%, closing at $25.60 [1] Analyst Ratings - Baird analyst Catherine Schulte maintained an Outperform rating on Avantor, raising the price target from $26 to $27 [2] - Stifel analyst Daniel Arias maintained a Buy rating, increasing the price target from $27 to $28 [2]