What Happened?
Shares of life sciences company Avantor (NYSE:AVTR) jumped 2.9% in the afternoon session after Bank of America Securities maintained its "Buy" rating on the company. This followed a similar move from Raymond James, which maintained its "Outperform" rating on the stock. The positive sentiment may have also been bolstered by broader trends, as the biotechnology sector experienced a significant surge in investor attention. This heightened interest was viewed as a potent indicator of wider market movements, signaling a potentially favorable environment for companies in related industries.
After the initial pop the shares cooled down to $15.56, up 2.5% from previous close.
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What Is The Market Telling Us
Avantor’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock gained 4.9% as sentiment towards the stock improved following a series of positive developments, including an analyst price target increase, a new board appointment, and the influence of an activist investor. Barclays raised its price target on the company's stock to $15.00 from $13.00 and maintained its "Overweight" rating. Separately, reports indicated an activist investor was pushing for significant changes or even a potential sale of the company. Avantor also announced it appointed Gregory T. Lucier to its Board of Directors, bringing significant experience from the healthcare industry.
Avantor is down 26.6% since the beginning of the year, and at $15.56 per share, it is trading 36.5% below its 52-week high of $24.49 from October 2024. Investors who bought $1,000 worth of Avantor’s shares 5 years ago would now be looking at an investment worth $629.50.
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