Argus analyst David Toung downgraded Catalent to Hold from Buy. The analyst cites the company’s recent FY23 guidance cut weakening end-market conditions, and increased macroeconomic uncertainty. While Catalent management plans to extend its capital spending timeline in order to boost free cash flow, this raises concerns about the company’s balance sheet as Catalent has already taken on substantial debt to finance capacity expansion, the analyst tells investors in a research note. Toung also cuts his FY23 EPS view by 13c to $3.75 and his FY24 view by 50c to $4.10.
Published first on TheFly
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