Morgan Stanley Raises Avient Target 27% to $52 After Strong Q4 Margins
Morgan Stanley lifted its Avient price target to $52 from $41 after reviewing Q4 results featuring 14% adjusted EPS growth and an 80-basis-point bump in EBITDA margins. Organic sales dipped 0.8% while reported revenue rose 1.9% on favorable forex and full-year EBITDA reached $545 million.
1. Price Target Revision
On February 17, Morgan Stanley increased its Avient price target by 27%, moving it from $41 to $52 while maintaining an Equal Weight rating. The firm cited a review of the company’s Q4 EPS and updated its valuation based on revised 2026 estimates.
2. Q4 Financial Performance
Avient delivered adjusted EPS growth of 14% in Q4 2025, driven by disciplined execution and cost management. Adjusted EBITDA margins expanded by 80 basis points year over year, reflecting a more favorable business mix.
3. Revenue and Sales Trends
Organic sales declined 0.8% in the quarter, while reported revenue climbed 1.9% thanks to favorable foreign exchange trends. These dynamics underscored the impact of currency movements on top-line performance.
4. End Market Strength and Full-Year Results
Key end markets including defense, health care and telecom each posted double-digit growth in Q4, and packaging demand began to recover. For the full year, adjusted EBITDA totaled $545 million, up 3.5%, and adjusted EPS rose 6% aided by lower interest costs and currency benefits.