Avantor, Inc. (AVTR): A Bull Case Theory

We came across a bullish thesis on Avantor, Inc. on Valueinvestorsclub.com by Teton0321. In this article, we will summarize the bulls’ thesis on AVTR. Avantor, Inc.’s share was trading at $12.34 as of July 21^st. AVTR’s trailing and forward P/E were 11.87 and 11.98, respectively according to Yahoo Finance.

Avantor (AVTR) appears deeply oversold, with stock sentiment bombed out on both industry and company-specific concerns, leaving minimal downside to estimates versus material upside from fundamentals or a potential takeout. Shares have dropped 42% in recent months, despite only modest 2–6% reductions in 2025–2026 revenue and EPS estimates. Market derating has been driven by extended post-COVID destocking, muted biotech M&A, NIH funding pressures, tariffs, and a messy Q1 update compounded by leadership transition and unclear messaging.

Recent developments signal improving visibility: CEO commentary has bracketed tariff impacts as immaterial, the CFO has confirmed mitigation through supply-chain moves and pricing, and key bioprocessing and tools end markets have stabilized. The Lab Solutions division, half of earnings and two-thirds of revenue, now has proven leadership under Corey Walker, whose prior tenure at Avantor and ILC Dover demonstrated a track record of market share gains.

Lab Solutions enjoys durable moats, with 80–85% recurring revenues, daily customer integration, and high regulatory and switching costs, while the Bioscience Production unit, though smaller, is the company’s margin and growth engine with entrenched positions in biologics, GLP-1, CGT, and mAbs.

Insiders have bought shares, new golden parachutes were adopted, and prior court filings disclosed strategic interest from Ingersoll-Rand at 17x EBITDA ($25/share, a potential double). With high free cash flow, low capital intensity, and double-digit ROIC, AVTR is positioned for rerating toward a high-teens earnings multiple ($20/share) if fundamentals merely stabilize, with catalysts including steady earnings, Lab Solutions recovery, and potential M&A unlocking value.

Previously, we covered a bullish thesis on Alcon Inc. (ALC) by Kontra Investment Xchange in December 2024, which highlighted its dominance in ophthalmology through Surgical and Vision Care segments and a promising pipeline. The stock has depreciated about 1.66% since sentiment softened, yet the thesis holds. Teton0321 shares a contrarian view, emphasizing Avantor’s undervaluation, improving fundamentals, and rerating potential from strategic interest.

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Disclosure: None.