Analyst Expectations For Catalent's Future

During the last three months, 4 analysts shared their evaluations of Catalent CTLT, revealing diverse outlooks from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $49.25, along with a high estimate of $55.00 and a low estimate of $42.00. Observing a downward trend, the current average is 0.51% lower than the prior average price target of $49.50.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Catalent among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Catalent. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Catalent compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Catalent's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Catalent's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Catalent analyst ratings.

All You Need to Know About Catalent

Catalent is a contract development and manufacturing organization, or CDMO. It operates under four segments: biologics, softgel and oral technologies, oral and specialty delivery, and clinical supply services. Catalent derives its revenues primarily from long-term supply agreements with pharmaceutical customers. The company provides a range of development and manufacturing solutions for drugs, protein-based biologics, cell and gene therapies, and consumer health products throughout the entire life cycle of a product from the drug development process to commercial supply. Catalent has over 50 facilities across four continents.

A Deep Dive into Catalent's Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Challenges: Catalent's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -3.91%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Catalent's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -77.29%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Catalent's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -17.96%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Catalent's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -7.3%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Catalent's debt-to-equity ratio surpasses industry norms, standing at 1.29. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.