RBC sees ‘multiple directions’ for Elliott to unlock value at Catalent

RBC Capital analyst Sean Dodge keeps an Outperform rating on Catalent with a $49 price target after the Wall Street Journal reported that Elliott Investment Management has established an ownership stake in the company and is talking to potential director candidates to join a slate of nominees to run in a proxy contest. The analyst is a surprised it took this long for an activist to surface at Catalent. The shares are down 60% over the last year, mostly due to a series of operational and forecasting missteps, the analyst tells investors in a research note. RBC sees “multiple directions Elliott could potentially take this in to unlock value,” including changing the board and/or management, a break-up or leveraged buyout. Catalent in morning trading is up 3% to $47.65.