Morgan Stanley's analyst, Vincent Andrews, has adjusted the price target for Avient (AVNT, Financial), bringing it down to $41 from the previous $51. Despite maintaining an Equal Weight rating for the stock, Andrews highlights that domestic demand remained steady in April. However, he notes an expanded market length due to a decline in polyethylene exports. This adjustment stems from a reported market imbalance in export markets, as buyers in regions like China, Europe, and Latin America have been reducing their orders. These conditions have led to expectations of lower prices for Avient's products.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Avient Corp (AVNT, Financial) is $42.88 with a high estimate of $51.00 and a low estimate of $40.00. The average target implies an upside of 16.51% from the current price of $36.80. More detailed estimate data can be found on the Avient Corp (AVNT) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Avient Corp's (AVNT, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Avient Corp (AVNT, Financial) in one year is $40.07, suggesting a upside of 8.89% from the current price of $36.8. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Avient Corp (AVNT) Summary page.
AVNT Key Business Developments
Release Date: May 06, 2025
- Organic Sales Growth: 2% increase driven by resilient demand in packaging.
- Adjusted EBITDA Growth: 4% increase, excluding foreign exchange impact.
- Adjusted EBITDA Margin: Expanded by 20 basis points to 17.5%.
- Adjusted EPS: $0.76, representing 4% growth excluding foreign exchange impact.
- US and Canada Organic Sales: Declined 3% due to weak demand in consumer and transportation markets.
- EMEA Organic Sales Growth: 2% increase, marking the fourth consecutive quarter of growth.
- Asia Organic Sales Growth: 9% increase with growth across most end markets.
- Latin America Organic Sales Growth: 17% increase, marking the fourth consecutive quarter of double-digit growth.
- Color Segment Organic Sales Growth: 3% increase, with adjusted EBITDA growth of 7% excluding foreign exchange.
- Specialty Engineered Materials Segment: Flat organic sales, with a 4% decline in adjusted EBITDA excluding foreign exchange.
- Free Cash Flow: Expected to range from $190 million to $210 million for the year.
- Debt Reduction: Plan to pay down $100 million to $200 million of debt by year-end.
- CapEx: Expected to be approximately $110 million for the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Avient Corp (AVNT, Financial) reported its fourth consecutive quarter of organic growth, with both sales and adjusted EPS meeting expectations.
- The company achieved a 2% organic sales growth in the quarter, driven by resilient demand in packaging.
- Adjusted EBITDA grew by 4%, excluding the impact of foreign exchange, due to higher organic sales and cost management.
- Avient Corp (AVNT) expanded its adjusted EBITDA margins by 20 basis points to 17.5%.
- The company continues to see strong growth in healthcare and defense sectors, with healthcare experiencing double-digit growth.
Negative Points
- Organic sales in the US and Canada declined by 3%, primarily due to weak demand in consumer and transportation end markets.
- The Specialty Engineer Material segment saw a decline in adjusted EBITDA by 4%, excluding the impact of foreign exchange.
- The transportation sector experienced double-digit declines in the US and EMEA, affecting overall sales.
- The evolving trade policy has led to uncertainty impacting demand in select markets and geographies.
- Avient Corp (AVNT) faces challenges with tariffs, although the direct impact is expected to be minimal.
