Avient: Growth Opportunities And New CEO

The Panoramic View
735 Followers

Summary

  • Avient's adjusted EPS and adjusted EBITDA both rose year over year in Q4 2023, with lower raw material costs being one of the key factors.
  • For full year 2024, management expects adjusted EPS of $2.40-$2.65, versus $2.36 per share in 2023 and $2.69 in 2022.
  • Avient has growth opportunities in potentially higher margin sectors. The company could also benefit from the beginning of lower interest rates.
  • Avient has a new leader in Ashish Khandpur who became CEO in December of 2023.
  • I rate Avient a 'Buy' given the company's expected growth and EV/EBITDA valuation, although I would own it as an 'equal weight' in a diversified portfolio.
Production line of plastic industry

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Avient Corporation (NYSE:AVNT) is a chemicals company that has a Color Additives and Inks business, and a Specialty Engineered Materials business.

In 2023, Avient's Color Additives and Inks business accounted for around $358 million and the Specialty Engineered Materials accounted

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