- BofA Securities has downgraded Catalent ( NYSE: CTLT ) to neutral from buy after the company cut its fiscal 2023 organic growth target.
- The firm also cut its price target to $60 from $125 (~21% upside based on Tuesday's close).
- Analyst Derik de Bruin said that increasing macro concerns prompted the outlook change from management. But he doesn't "think there is anything structurally wrong with business, and note that shares are relatively inexpensive vs. peers and see strategic value in CTLT. "
- Catalent ( CTLT ) has seen "lower demand for its consumer discretionary products (e.g, nutritional supplements) and both consumer and biopharma customers making efforts to conserve cash by either managing inventories or delaying projects (esp. in drug development/formulation)."
- See why Seeking Alpha contributor Bret Jensen sees Catalent ( CTLT ) as a hold.
For further details see:
Catalent downgraded to neutral at BofA due to lack of near-term visibility