The downgrade to Sector Perform suggests a neutral outlook on Catalent's stock performance in the short term, indicating that the stock might not outperform the market as previously expected. However, the increase in the price target from $58 to $63.5 reflects a positive adjustment in the valuation, suggesting that the stock still has potential for price appreciation. The mixed signals from the downgrade and the raised price target could lead to a neutral short-term impact on the stock price.