Avantor Analysts Cut Their Forecasts After Q1 Results

Core Points - Avantor Inc reported adjusted EPS of 23 cents for the first quarter, which was in line with consensus expectations, but sales of $1.58 billion fell short of the consensus estimate of $1.61 billion [1] - The company’s Lab Solutions revenue was negatively impacted by reduced demand, particularly in the Education and Government sectors, due to recent policy changes [2] - Avantor announced an update to its full-year outlook, reflecting ongoing funding and policy-related challenges, and emphasized a strategy to improve performance in the Lab Solutions segment [2] - CEO Michael Stubblefield intends to step down, prompting the Board to initiate a search for a new CEO [2] Stock Performance - Following the earnings announcement, Avantor shares fell by 16.6%, closing at $12.93 [3] - Analysts have adjusted their price targets for Avantor, with Baird maintaining an Outperform rating but lowering the target from $21 to $17, Morgan Stanley downgrading from Overweight to Equal-Weight with a target reduction from $25 to $15, and Barclays maintaining an Overweight rating while lowering the target from $18 to $15 [7]