In-Depth Examination Of 5 Analyst Recommendations For Catalent

Across the recent three months, 5 analysts have shared their insights on Catalent CTLT, expressing a variety of opinions spanning 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.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $60.2, a high estimate of $63.50, and a low estimate of $47.00. Observing a 12.17% increase, the current average has risen from the previous average price target of $53.67.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Catalent is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Catalent. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Catalent compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Catalent's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Catalent's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Catalent analyst ratings.

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.

Key Indicators: Catalent's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Catalent faced challenges, resulting in a decline of approximately -10.88% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Catalent's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -20.12%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Catalent's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -5.47%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Catalent's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -2.06%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Catalent's debt-to-equity ratio stands notably higher than the industry average, reaching 1.36. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

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.

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