UPDATE: J.P. Morgan Initiates Coverage on Catalent with Overweight Rating, $28 PT on Market Leader Position

In a report published Tuesday, J.P. Morgan analyst Tycho W. Peterson initiated coverage on

with an Overweight rating and $28.00 price target. In the report, J.P. Morgan noted, “We are initiating coverage on Catalent (CTLT) with an Overweight rating and December 2015 PT of $28. As a global leader in the drug delivery outsourcing market, Catalent sits at the nexus of several secular trends, including growing demand from biopharma companies for complex dose forms, and low outsourcing penetration rates. We expect CTLT's differentiated and diversified operating platform, coupled with sticky customer relationships, to drive consistent top-line growth with industry-leading margins, with deleveraging and M&A driving HSD EPS growth going forward.” Catalent closed on Monday at $22.50.