Amidst recent trading, Catalent Inc (Symbol: CTLT) has surged past the average analyst 12-month target price of $57.81, trading at $58.14/share. When a stock hits the target an analyst has set, the analyst has two options: either downgrade due to valuation or elevate the target price. The reaction of analysts may hinge on fundamental business developments driving the stock higher – signifying an upward trend for the company, potentially necessitating an increase in the target price.
There are 8 different analyst targets within the Zacks coverage universe contributing to the average for Catalent Inc. Yet, the average is just a mathematical fusion. Some analysts predict prices lower than the average, with one targeting $42.00, while on the other end, one analyst sets a high target at $63.50. The standard deviation is $8.717.
However, the rationale behind scrutinizing the average CTLT price target is to tap into the “wisdom of crowds.” It amalgamates the perspectives of all individual minds contributing to the final number, opposed to relying solely on one expert. Consequently, with CTLT surpassing the average target price of $57.81/share, investors have received a solid signal to re-evaluate the company and deliberate whether $57.81 is just a pit stop en route to a higher target, or if the valuation has stretched to the extent where it’s time to consider reducing exposure. Here’s a table depicting the current sentiments of analysts covering Catalent Inc:
| Current CTLT Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 2 | 4 | 4 | 4 |
| Buy ratings: | 0 | 2 | 2 | 2 |
| Hold ratings: | 8 | 7 | 7 | 7 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.73 | 2.32 | 2.32 | 2.32 |
The average rating in the last row ranges from 1 to 5, where 1 signifies Strong Buy and 5 indicates Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com. Access the latest Zacks research report on CTLT for FREE.
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Please note that the views and opinions expressed herein reflect those of the author and do not necessarily align with Nasdaq, Inc.’s viewpoints.
