The shares of Catalent, Inc. (NYSE:CTLT) added ~22% to reach the highest level since October on Monday, as Jefferies estimated a $96 per share offer price for a potential M&A deal with Danaher Corporation (NYSE:DHR).
The upsurge comes after Bloomberg reported Saturday that Danaher (DHR) had shown interest in the contract manufacturer, indicating “a significant premium” for the Washington-based company in recent months.
Assuming the multiple Thermo Fisher (TMO) paid for contract manufacturing organization Pantheon in 2017, Jefferies analyst David Windley argues that a potential deal with Danaher (DHR) could value Catalent (CTLT) at just under $93 per share or $20.7B, including debt.
Jefferies has Buy ratings on both Danaher (DHR) and Catalent (CTLT), with price targets at $310 and $67 per share, respectively.
However, Citi is cautious about a potential deal due to concerns about strategic fit and Danaher’s (DHR) prior remarks on acquisitions in the CRO and CDMO field.
