Catalent (CTLT), mcap=$18.4bn, price $102.51 vs $90.56

– Contract manufacturer for biopharma.
– Reliable industry partner with strong competitive positioning and track record of FDA compliance.
– Recent investments in cell and gene therapies will propel growth for 10+ years.
– Business is getting more weighted towards higher margin and faster-growing biologicals.
– 28-39% IRR over the next 3-4 years.

– Trades at 15.5x EBITDA
– Is cheap given EBITDA has grown at 23% CAGR over the last 4 years.
– Typically traded at 20-22x fwd EBITDA.
– Expected to reach EV=$50bn by 2026 with $7.5bn in revenues and 30%+ EBITDA margins.

Exp. gain: +100% to $10/share by 2026.

Full CTLT write-up (free guest account required):

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