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Baird upgraded its rating on Catalent (NYSE:CTLT) to outperform, stating that “virtually every concern previously holding us back is being addressed.”
While acknowledging uncertainly around Sarepta’s gene therapy Elevidys in 2024, Baird said it is aligned more with Sarepta and Catalent’s optimism for the product and believes the Street “may be overestimating binary fundamental risk, though sensitivity to Elevidys outlook will remain very elevated.”
Baird added that it had “growing confidence” in Catalent’s new CFO’s work to transition the company from “an unacceptably poor FCF history, to less bad in the moment, to acceptable over time.”
The investment firm increased its price target to $53 from $45.