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Catalent, Inc. (CTLT), with a market cap of $10.8 billion and based in New Jersey, is a leading global provider specializing in advanced delivery technologies, development, and manufacturing solutions for drugs, including biologics like protein, cell, and gene therapies, as well as consumer health products.
Shares of this healthcare company have outperformed the broader market in the last year. While CTLT has surged 34% over this time frame, the broader S&P 500 Index ($SPX) has rallied by 28.1%. In 2024, the stock soared 32.3%, compared to SPX’s 17.3% return on a YTD basis.
Narrowing the focus, CTLT’s robust price action is more pronounced when compared with the SPDR S&P Pharmaceuticals ETF (XPH), which has gained 1.5% over the past year and 4.6% on a YTD basis.
On May 8, Catalent released its Q3 earnings results, reporting an adjusted loss per share of $0.06, significantly missing the consensus EPS estimate of $0.24. The company's revenue came in at $1.07 billion, below the consensus estimate of $1.11 billion. However, its adjusted EBITDA saw a substantial year-over-year increase of 55.2%, reaching $163 million. Despite these mixed results, CTLT shares closed marginally lower on the day of the announcement.
For the current fiscal year, which ended in June, analysts expect CTLT’s loss per share to rise 120% year over year to $0.17. Moreover, the company’s earnings surprise history is grim. It missed the consensus estimate in three of the last four quarters while beating on only one occasion.
Catalent stock has a consensus “Hold” rating. Out of 10 analysts covering the stock, two recommend a "Strong Buy," and eight advise a "Hold."
The consensus rating has been stable over the past months.
On Jun. 28, Barclays PLC (BCS) analyst Luke Sergott maintained a "Hold" rating on Catalent and raised the target price from $47 to $63.
The mean price target of $62.36 suggests a 4.9% premium from CTLT from current levels. Furthermore, the Street-high target of $63.50 represents an upside potential of 6.8%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
