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“We are lowering ’24 EBITDAe for the 3rd time in a month. Mgt cut ’23 revenue and EBITDA guidance by another $25M each,” the analysts wrote. “Core growth in FY24 is limited due to biotech funding weakness, soft consumer demand, and timing of capacity additions in growth areas.”
They said the firm is concerned about headwinds to Catalent’s underlying growth, including narrowing biotech pipelines, softening consumer demand, and slow ramp in cell tx and plasmids.
“An SRP-9001 approval later this month should help FY24 growth, but an approval delay and/or narrow label could also push manufacturing revenue to the right,” they added.
The analysts also believe the company’s fundamentals “no longer justify upside from current levels.”
