December 9, 2023

Deutsche Bank is more optimistic about Catalent after the New Jersey-based company expanded its manufacturing partnership with Modern.

Catalent the shares were upgraded to Buy on Hold on Monday with a target price of $88 per share, Deutsche Bank said. This represents more than 30% upside potential for investors, based on Monday’s closing price of $67.26.

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“The renewal and expansion of the Moderna partnership is a strategic win for Catalent that reduces tail risk and alleviates investor concerns about terminal value due to weakened market positioning,” Deutsche Bank analyst Justin Bowers wrote on Monday.

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On Monday, Deutsche Bank upgraded Catalent from Hold to Buy with a target price of $88 per share.

He added that Catalent shares, which rose 3.6% on the upgrade, had already outperformed stocks. S&P 500 this year with a gain of 49% compared to the growth of the key index by 7%.

Bowers said he expects more growth. Two Catalent manufacturing facilities recently received FDA clearance to manufacture SRP-9001. Sarepta Therapy experimental gene therapy for Duchenne muscular dystrophy.

“We evaluate [contract development and manufacturing organization, or] The CDMO market opportunity for SPR-9001 could be as high as $12 billion at full penetration, and Catalent will lead the way in viral vector production at this stage,” Bowers said.

Maximum target price

90.00

Lowest target price

55.00

— Michael Bloom of CNBC