Upgrade Overview
Deutsche Bank upgraded Schott Pharma to Buy from Hold and raised its price target to €22 from €16, citing an expected acceleration in growth during the second half of 2026.
Analyst Commentary
Analyst Falko Friedrichs explained that the company’s first‑half performance was slowed by reduced demand from a key glass‑syringe customer, but he anticipates a pick‑up in the third and fourth quarters accompanied by improving margins. He wrote that the full‑year 2026 guidance should be achievable, at least at the midpoint.
Market Reaction
Schott Pharma shares surged more than 8% in early trading by 07:15 GMT. The stock now trades at 16× the company’s estimated 2027 earnings, representing roughly a 30% discount to its closest competitor, Italy’s Stevanato Group.
Company Profile
Schott Pharma manufactures glass and polymer packaging for injectable drugs, including pre‑fillable syringes, vials, cartridges and ampoules used for biologics, vaccines and other therapeutics. The company was spun off from German glassmaker Schott AG and listed on the Frankfurt Stock Exchange in 2023. It operates 17 manufacturing sites across Europe, the Americas and Asia.
Outlook and Valuation
Deutsche Bank expects Schott Pharma to return to its medium‑term guidance from fiscal 2027 onward, targeting 6‑8% organic sales growth and continued margin expansion. The current valuation of 16× 2027 earnings is deemed attractive given the improving growth prospects.