** Shares in Schott Pharma 1SXP.DE are up around 2.5% after Berenberg raised its rating on German pharmaceutical industry supplier to "buy" from "hold"
** The broker says the company is set to benefit from recovering drug containment demand
** Superiority of GLP-1 injectable diabetes drugs, structural trends in biologics and ready-to-use vials underpin sustainable long-term market growth, with peers projecting restocking and higher production volumes into 2026, it notes
** After having peaked in 2023, the broker expects Schott Pharma's capital expenditures to normalise at around 12-13% of sales in 2026-2027, positioning the company for stable free cash flow generation from 2026 onwards
** The broker adds it sees the company's valuation as "attractive"
** Out of 13 analysts that cover Schott Pharma, 11 rate the stock "strong buy" or "buy," one rates it "hold" and one "sell" - LSEG data
(Reporting by Emanuele Berro)
((emanuele.berro@thomsonreuters.com))