What happened
The hits just keep coming for Catalent (CTLT -0.04%) stock, and not in a good way. In line with a recent trend, the contract drug manufacturer's shares suffered a notable fall on Tuesday, declining by almost 6% in price. That wasn't altogether surprising, given that the stock received a fresh price target cut from an analyst.
So what
Bank of America prognosticator Derik de Bruin is now officially more bearish on Catalent's future.
The prognosticator made a deep slice to his target on the niche healthcare company's shares, whacking it down to $49 per share from the previous $78. He maintained his neutral recommendation on the stock as he did so.
The reasoning behind de Bruin's move wasn't clear, but it's part of a wider trend. His is only the latest price target reduction from analysts at prominent researchers. Last week, prognosticators at both Deutsche Bank and Barclays also adjusted their numbers downward. The latter company's Luke Sergott, like de Bruin, made a significant change, lowering his Catalent price target from $70 to $40 per share.
Now what
Catalent management surely can't wait for April to be over. The month has seen the company announce that the revenue for its soon-to-be-announced fiscal third quarter of 2023 would likely be notably under its own projections. It's also likely to come in under analyst estimates, which won't win it many believers among the investor community.
In a development that's surely related, just after Catalent's admission, a would-be suitor backed away from buying out the company. This is conglomerate Danaher, which said it's abandoning its pursuit for now.
