10 Undervalued Stocks with the Highest Upside Potential

8. Avantor Inc. (NYSE:AVTR)

Forward P/E Ratio: 16.52x

Upside Potential: 43%

Number of Hedge Fund Holders: 39

Avantor Inc. (NYSE:AVTR) is a leader in life sciences and biopharmaceutical products and solutions and advanced materials. The company distributes critical products to healthcare, research, and high-tech markets. Avantor facilitates drug manufacturing, laboratory research and development, and semiconductor manufacturing and is a mission-critical healthcare supply chain provider.

Q4 2024 net sales were $1.69 billion, a 2% decline year over year and 1% organic growth. GAAP diluted EPS and adjusted EPS were $0.73 and $0.27, respectively, reflecting cost control amid macroeconomic challenges. Avantor Inc. (NYSE:AVTR) generated $173.3 million in operating cash flow and $222.1 million in free cash flow, reflecting good management of cash.

Avantor Inc. (NYSE:AVTR) is increasing its manufacturing capability in biopharmaceuticals with a focus on growth segments such as cell and gene therapy, mRNA technologies, and semiconductor materials. Its acquisitions and digital transformation are designed to propel revenue in the long term.

The analysts are predicting a 43% upside with a target price of $25 based on a current price level of $17.5. Avantor’s April 2025 earnings announcement would most likely paint a better picture as far as revenue stabilization and recovery plans are concerned.