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Piper Jaffray Reiterates Outperform Following Catalent's (CTLT) 2Q Beat

February 10, 2016 9:03 AM EST
Get Alerts CTLT Hot Sheet
Price: $56.48 --0%

Rating Summary:
    6 Buy, 13 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 7 | Down: 3 | New: 1
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Piper Jaffray maintained an Overweight rating on Catalent (NYSE: CTLT), and cut the price target to $29.00 (from $30.50), following the company's 2Q earnings report. Revenue of $454.9M beat consensus of $440.3. Adjusted EPS of $0.36 beat consensus by three cents. The company lowered guidance for FY16 to account for the suspension of operations at the Beinheim plant in France, and subsequent lower than anticipated revenue.

Analyst Sean Wieland commented, "Catalent beat revenue and beat consensus EPS by $0.03, but the suspension of operations in the France softgel plant have put a temporary wrinkle in FY16 revenue and profitability. We expect normal operations and long term growth targets to ensue by FY17. We are rolling our valuation methodology forward to CY17 and our PT moves to $29 ($30.50 prior) based on 12x (unchanged) CY17E EV/ EBITDA of $453.8M, with net debt $1.85B ($1.7B prior) and 126M s/o (unchanged). We reiterate our Overweight."

For an analyst ratings summary and ratings history on Catalent click here. For more ratings news on Catalent click here.

Shares of Catalent closed at $20.97 yesterday.



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Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

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Piper Jaffray, Earnings, Sean Wieland