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HomefinanceDeutsche Bank sees more than a 30% rally for this specialty biotech...

Deutsche Bank sees more than a 30% rally for this specialty biotech stock


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Deutsche Bank is more bullish on Catalent after the New Jersey-based company expanded its manufacturing partnership with Moderna.

Catalent shares were upgraded to buy from hold on Monday, with a price target of $88 per share, Deutsche Bank said. That represents more than 30% upside for investors, based on Monday’s closing price of $67.26.

“The Moderna partnership renewal and expansion is a strategically important win for Catalent and diminishes tail risk and investor concerns around terminal value due to weakened market positioning,” Deutsche Bank analyst Justin Bowers wrote on Monday.

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Catalent received an upgrade from Deutsche Bank on Monday from hold to buy with a price target of $88 per share.

He added that Catalent stock, which gained 3.6% on the back of the upgrade, has already outperformed the S&P 500 this year with a gain of 49% compared with the key index’s 7% advance.

Bowers said he anticipates more upside ahead. Two Catalent production plants recently won FDA approval to manufacture SRP-9001, Sarepta Therapeutics’ investigational gene therapy for Duchenne Muscular Dystrophy.

“We estimate the [contract development and manufacturing organization, or] CDMO market opportunity for SPR-9001 could be as great as $12b under full penetration, with Catalent leading viral vector production at his juncture,” Bowers said.

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—CNBC’s Michael Bloom contributed to this report.

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