tarabird
Deutsche Financial institution raised its advice for contract producer Catalent (NYSE:CTLT) to Purchase from Maintain and lifted its value goal to $88 from $79 per share, citing a possible upside to the corporate’s 2023/ 2024 estimates.
“The crux of our improve is that we have now elevated conviction and see potential upside to our 2023 / 2024 estimates,” the analyst Justin Bowers wrote.
Bowers factors to CTLT’s strategic partnerships with COVID-19 vaccine maker Moderna (MRNA) and gene remedy developer Sarepta (SRPT) to argue that the corporate has “diminishing tail danger.”
Citing CTLT’s partnership for Duchenne muscular dystrophy, SRP-9001, with Sarepta (SRPT), Bowers argues that the latter, having accounted for $135M in CY22, might result in a three-fold rise in its FY24 contribution.
Regardless of YTD outperformance, “we nonetheless see a 2.5-to-1 optimistic danger / reward skew for the inventory beneath a FDA approval for SRP-9001 and probably larger in an M&A state of affairs,” he added.
The analyst additionally argues that the corporate’s current contract extension with Moderna (MRNA) for its pandemic-era collaboration additional de-risks Catalent’s (CTLT) ahead income and points a $100 per share takeout worth for the inventory, noting its M&A prospects.
In early February, Catalent (CTLT) shares surged amid information studies that the life sciences firm Danaher (DHR) was on the lookout for a deal to purchase it at “a major premium.”
