Catalent upgraded to Buy at Argus on strong growth outlook for FY24

Argus upgraded Catalent (CTLT) to Buy from Hold with a $62 price target. The company’s outlook for FY24 was upbeat as the management projected strong growth for its non-COVID revenue in its Biologics segment and mid-to-high growth for its Pharma and Consumer Health segment, the analyst tells investors in a research note. As Catalent implements operational initiatives in its production facilities to improve profit margins following its cooperation with Elliott Management, the company has pivoted from COVID vaccines to developing and commercializing advanced biologics and gene therapies, Argus notes. The firm further contends that Catalent should benefit from the manufacturing of GLP-1 weight-loss drugs and breakthrough gene therapies, including Sarepta’s (SRPT) DMD therapy.