Abating headwinds - UBS upgrades Schott Pharma to 'buy'

SCHOTT Pharma AG & Co KgaA

25/02/2025 14:06

** German drug containment and delivery systems maker Schott Pharma 1SXP.DE is upgraded to "buy" from "neutral" by UBS, which says two headwinds are abating

** The analyst expects the sector-wide vial destocking following the COVID pandemic to abate by mid 2025 at the latest noting positive developments in order intake

** Following last year's order cancellations the broker removes about EUR 90 million of mRNA polymer syringe sales from its estimates

** However, UBS still sees potential for growth in the glass syringe business on the back of capacity additions to more than offset the reduction in mRNA polymer syringe sales

** UBS says Schott trades at about a 30% discount to peer Stevanato STVN.N  despite similar sales and profits three year compounded annual growth rates

** Out of 12 analysts that cover SCHOTT Pharma AG & Co KgaA, five rate the stock "strong buy" or "buy,"​ four rate "hold" and three rate the stock "strong sell" or "sell"

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))