Schott Pharma drops after Deutsche Bank downgrades on demanding valuation

Shares of Schott Pharma experienced a decline of over 4% on Friday following Deutsche Bank's downgrade of the pharmaceutical packaging company to Hold from Buy. Analyst Falko Friedrichs cited the stock's remarkable 70% increase year-to-date, now valuing the company at a higher, more demanding level, making it challenging to foresee further upside potential in the near term.

Additionally, a €15 million one-time payment in fiscal 2026, constituting approximately 1.5% of group sales, may prompt the company to guide growth below its medium-term target of 6% to 8% for fiscal 2027. Friedrichs anticipates revised guidance projecting 5% to 7% organic growth and an expected 5.5%, contrasting with the prevailing consensus of 7%.

He also projects adjusted EBITDA guidance to either remain flat or exhibit slight improvement, and forecasts flat margins. Despite noting Schott Pharma's recent strides in meeting expectations and maintaining an attractive medium-term outlook, Friedrichs recommends waiting for a more favorable entry point before considering a purchase.