Catalent downgraded to hold at Jefferies on growth concerns

• Jefferies has downgraded Catalent (NYSE:CTLT) to hold from buy as it sees limited core growth in fiscal 2024.
• The firm also lowered its price target by $1 to $44 (~1% upside based on Tuesday's close).
• Analyst David Windley said the company's growth will be negatively impacted by the negative impacts of biotech funding weakness, soft consumer demand, and timing of capacity additions.
• He added that while management sees $600M in COVID revenues in FY 2023, he sees that figure shrinking to ~$100M in FY 2024.
• Windley noted that given its current cheap valuation, Catalent (CTLT) could potentially be attractive for an acquisition.

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