What happened
Beleaguered healthcare stock Catalent (CTLT -0.14%) took the latest in a series of drubbings on the market Tuesday. This one wasn't as bad as those of previous sessions, although that was surely cold comfort at best to the company's shareholders. Ultimately the shares closed the day more than 1% lower, while the S&P 500 index only dipped by 0.5%.
So what
Currently enduring a perfect storm of bad news, Catalent has recently been the target of a clutch of analyst price target cuts. Two more hit the specialty healthcare stock on Tuesday, with one being accompanied by a recommendation downgrade.
That came from was Bank of America, in the person of analyst Derik de Bruin. In knocking his recommendation down one peg from neutral to underperform (i.e., sell), he made a drastic cut to his price target. He now feels Catalent stock is worth $28 per share, quite some distance down from his previous level of $49.
De Bruin expressed concern about the company's latest piece of bad news, in which it divulged that the publication of its third quarter of fiscal 2023 results will be delayed, and those results will feature significantly reduced guidance.
The prognosticator wrote of the latter that "this is a much steeper cut than what had been anticipated and raises even more questions about the nature of the productivity/operational issues that CTLT is facing."
Now what
Meanwhile, European lender Deutsche Bank's Justin Bowers continues to rate Catalent stock a buy, but he's getting less bullish, too. He lowered his price target from $72 per share to $55. Although his reasoning wasn't immediately clear, it's safe to assume he had concerns similar to those of his Bank of America peer.
