Goldman Sachs upgraded Avient (AVNT +8.2%) to Buy from Neutral (PT, $32 — $39) given the stock’s “undemanding valuation; in the past 6-months, the stock has gained 52%.

Wall Street Analysts rating is Bullish (PT, $33.20).

Valuation vs. peers:

Analyst Robert Koort tells that with the Clariant Masterbatches deal closed and the acquired business “showing excellent resilience” along with synergy targets lifted, Avient’s equity price offers an attractive entry point.

Quick look at Clariant integration & synergies update:

Avient has made “significant progress in high-grading its business mix” and is on a path to deliver margin improvement through 2023, says the analyst.

The company is positioned to sustainably grow at a rate that exceeds GDP:

The cost synergies from the Clariant Masterbatch acquisition will help drive substantial margin expansion; excluding distribution segment and pro forma with synergies, EBITDA margins at Avient are seen exceeding 16%:

Previously: Avient guides Q3 above consensus (Sep. 24)

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