Avantium’s shares fell 3.9% to €5.21 on Friday after Kepler Cheuvreux downgraded the Dutch chemicals company to ‘reduce’ from ‘hold’ and reduced its price target to €5 from €6.40.
The broker cited concerns over cash burn and dilution risks amid ongoing capital requirements for Avantium’s shift from technology development to commercial production of FDCA, the key monomer for its plant-based PEF polymer. Kepler estimates Avantium will require at least €55 million in additional equity in the near term, with potential total dilution of roughly €380 million over the coming years through multiple funding rounds.
Avantium’s stock is trading just above its 52-week low of €5.19, with the new €5 target representing a 7.7% discount to Kepler’s baseline share price of €5.42. The AEX index rose 0.2% during the session, providing limited offset to the decline.
The funding pressure reflects the capital-intensive nature of scaling FDCA production, a transition Avantium has described as critical to its long-term commercial viability.
