On Monday, Berenberg adjusted its outlook on Schott Pharma AG (ETR:1SXP:GR) shares, reducing the price target to €32 from the previous €38, while maintaining a Hold rating on the stock. This revision follows Schott Pharma's second-quarter results, which suggested a potential turnaround after a tumultuous May.
The company's stock experienced a significant uptick, climbing approximately 10% on the day of the Q2 results announcement, which was on the previous Thursday. Schott Pharma's management team presented a more optimistic picture, emphasizing that the process of vial destocking has largely concluded, with a resurgence of demand as over 80% of its customers have resumed purchasing vials.
Moreover, Schott Pharma reported that quarter-over-quarter revenue growth trends have shown improvement in Q3. Encouraged by these positive developments, management expressed increased confidence in achieving the higher end of their projected revenue growth and an EBITDA margin target around 26.6%.
Despite these promising signs, concerns linger regarding the company's handling of currency exposure and the stability of future revenue streams, particularly those related to mRNA technology. These factors contributed to the analyst's cautious stance and the adjusted price target for Schott Pharma shares.
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