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1SXP SCHOTT Pharma AG & Co KgaA News Story

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Schott Pharma climbs after Berenberg upgrades to 'buy'

** 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))

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