Investing.com -- Shares in Catalent Inc (NYSE:CTLT) rose in early U.S. trading on Tuesday after analysts at Argus Research upgraded their rating of the biopharmaceutical firm to buy from hold.
The analysts also set their price target for the group at $62, highlighting an "upbeat outlook" from the business for its 2024 fiscal year that included strong projected growth for its "non-COVID revenue."
Last week, the drug-product manufacturer unveiled a 2024 revenue forecast of between $4.3 billion to $4.5 billion that topped estimates, although its guidance for earnings before interest, taxes, depreciation and amortization missed expectations.
In a separate statement, the New Jersey-based company said it would add four new independent directors to its board and undergo a strategic review as part of an agreement with activist investor Elliott Investment Management. The deal, in effect, gives Elliott some sway over determining Catalent's strategy, including a possible sale of all or parts of the company.
During the pandemic, Catalent was boosted by a windfall filling syringes for large pharma companies, but it has since been plagued by production delays at three of its key facilities.
Chief Executive Officer Alessandro Maselli has said that Catalent now has "the right strategy in place," adding that it plans to play a "major role" in GLP-1 drug production. Catalent currently helps manufacture Novo Nordisk's (NYSE:NVO) popular Wegovy weight-loss injection, which is from the class of GLP-1 receptor agonist drugs.
Citing Catalent's relationship with Novo, the Argus analysts said they see "several positive developments as the company transitions to a post-COVID environment with a focus on developing and commercializing advanced biologics and gene therapies."