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Based in Somerset, New Jersey, Catalent, Inc. (CTLT) develops and manufactures solutions for drugs, protein-based biologics, cell and gene therapies, and consumer health products. Valued at a market cap of $10.8 billion, the company serves biotechnology, pharmaceutical, consumer health companies, animal health and medical device companies, and cosmetics industries as well.
Companies valued at $10 billion or more are generally described as “large-cap” stocks, and Catalent fits right into that category. The company is a global leader in drug development and delivery. It helps accelerate over 1,000 partner programs and launch over 150 new products yearly with its over 18,000 workforce, including more than 3,000 scientists and technicians.
Shares of CTLT are trading 2.2% below their 52-week high of $61.20, recorded on Aug. 30. The pharma company has gained 6.6% over the past three months, surpassing the broader Health Care Select Sector SPDR Fund’s (XLV) 4.1% return over the same time frame.
In the longer term, CTLT stock is up 33.2% on a YTD basis, surpassing XLV’s 11.9% gains. Moreover, shares of CTLT have gained 30.7% over the past 52 weeks, outperforming XLV’s 16.6% returns over the same time frame.
CTLT has been trading above its 200-day moving average since early January and has remained above its 50-day moving average since mid-December last year, indicating a bullish trend
On Feb 5, CTLT’s stock jumped 9.7% after the company announced a merger agreement with Novo Holdings, in which Novo Holdings would acquire Catalent in an all-cash transaction for $16.5 billion. Moreover, the stock increased marginally following its strong Q4 and full-year 2024 earnings release on Aug. 29. The company’s Q4 adjusted EPS of $0.65 and revenue of $1.30 billion significantly increased year-over-year while surpassing the Wall Street estimates. This was primarily driven by strong growth in both of its segments coupled with a significant increase in its gross margin.
CTLT’s outperformance becomes more evident compared to its rival, Amgen Inc. (AMGN), which gained 17.2% over the past 52 weeks and 8.6% on a YTD basis.
Despite CTLT’s outperformance relative to the broader sector, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 10 analysts covering the stock, and it is currently trading below the mean price target of $63.43.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
