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With a market cap of $10.7 billion, Catalent, Inc. (CTLT) is a leading global provider of advanced delivery technologies and development solutions for drugs, biologics, and consumer health products. Based in Somerset, New Jersey, the company offers comprehensive services across two main segments: Biologics and Pharma & Consumer Health.
Shares of the drug delivery technologies maker have outperformed the broader market over the past 52 weeks. CTLT stock has risen 47.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 30.1%. In 2024, shares of CTLT are up 31.3%, compared to SPX's 24.1% gain on a YTD basis.
Looking closer, CTLT has also outpaced the Health Care Select Sector SPDR Fund's (XLV) 10.2% returns over the past 52 weeks and a 4.9% YTD rise.
Shares of Catalent fell marginally on Nov. 5 due to the company's weaker-than-expected Q1 adjusted loss of $0.13 per share and revenue of $1 billion. The Biologics segment also underperformed, generating $461 million in revenue, below the forecast. Furthermore, concerns surrounding the regulatory approval of Catalent's acquisition by Novo Holdings, along with criticism from consumer and labor groups about potential competition risks in the weight-loss drug industry, added to investor concerns.
For the current fiscal year, ending in June 2025, analysts expect CTLT's EPS to grow significantly year-over-year to $0.84. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the last four quarters while missing on three other occasions.
Among the nine analysts covering the stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy” rating and eight “Holds.”
This configuration is slightly less bullish than three months ago, with two “Strong Buy” ratings on the stock.
On Nov. 6, Jefferies analyst David Windley maintained a “Hold” rating on Catalent with a price target of $63.50, citing underperformance in the Biologics segment. While the Pharma and Consumer Health segment showed stability, the sale of the Somerset NJ facility and challenges in the Biologics division led to a cautious outlook for the company.
As of writing, CTLT is trading below the mean price target of $63.42. The Street-high price target of $63.50 implies a modest potential upside of only 7.6%.
