Avantor-Here's Why You Should Hold AVTR Stock in Your Portfolio for Now

Core Viewpoint - Avantor, Inc. is positioned for growth due to a strong product portfolio and strategic deals, despite facing challenges from customer loss and forex volatility [1][8][9] Company Overview - Avantor has a market capitalization of $11.13 billion and anticipates 13.3% earnings growth over the next five years, with earnings surpassing estimates in the last four quarters by an average surprise of 5.7% [2] Growth Factors - **Product Portfolio**: Avantor offers a wide range of high-value specialty products and services, enhancing analytical results in regulated industries, supported by an e-commerce platform and the Avantor Business System [3] - **New Product Launches**: In Q4 2024, Avantor introduced AI-powered services for pharma and biotech, launched Masterflex Miniflex Panel-Mount pumps, and expanded product availability with Quantum-Si and LGC Standards [4] - **Strategic Deals**: The company secured new supplier agreements and exclusive distribution deals, including a partnership with LGC Standards and Novilytic [5][6] Financial Performance - **Strong Q4 Results**: Avantor reported better-than-expected earnings in Q4 2024, with impressive year-over-year net sales and order intake in Bioscience Production, alongside robust sales in proprietary chemicals and specialty procurement [7] Challenges - **Customer Loss**: The company faces potential revenue declines due to the loss of a significant number of customers, which could adversely affect operating results [8] - **Forex Volatility**: A considerable portion of Avantor's revenues comes from international operations, making it vulnerable to fluctuations in foreign currency exchange rates [9] Estimate Trends - The Zacks Consensus Estimate for Avantor's earnings per share for 2025 has decreased by 7 cents to$ 1.05, with Q1 2025 revenue estimates at $1.61 billion, indicating a 4.1% decline from the previous year [10]