Catalent shares jump 10% on Elliott news

July 20, 2023 10:10 AM PDT | By Invezz

Catalent shares jump 10% on Elliott news — Image source: Invezz

Elliott is pushing for changes to its board

The activist investor has been talking to potential candidates that it wants to nominate to the company’s board, as per a WSJ report.

Exact size of its position in the New York listed firm, though, remains unknown.

The stock market news arrives shortly after Catalent Inc lowered its guidance for the full financial year citing productivity issues and increased costs at three of its facilities.

It now forecasts up to $210 million in adjusted earnings for fiscal 2023 – down sharply from up to $648 million it guided for in May. Catalent shares are currently trading more than 35% down versus their year-to-date high.

Is Elliott news a reason to buy Catalent shares?

Both Catalent and Elliott Investment are yet to make an official comment on the WSJ report.

Note that the company based out of New Jersey is the only contract manufacturer for Wegovy – a weight loss drug developed by Novo Nordisk that FDA approved for teens earlier this year.

The push to make changes to the board comes only a month after Catalent named Matti Masanovich its Chief Financial Officer. The multinational will report its Q4 earnings in September.

Also on Thursday, Wells Fargo assumed coverage of Catalent shares with an “equal-weight” rating. The firm announced a $43 price target on “CTLT” that suggests about a 10% downside from here.

The post Catalent shares jump 10% on Elliott news appeared first on Invezz.

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