STVN - Stevanato: Destock Pressures Long-Term Upside

2024-05-29 02:16:04 ET

Summary

• Stevanato revised its guidance for 2024 due to weaker-than-expected orders and clients' destocking activities.
• The company's Q1 results show decreased EBITDA and profit, causing investors to sell off shares.
• Here at the Lab, we remain confident in long-term prospects thanks to capacity expansion and biologics demand.
• STVN is not trading at a premium compared to its peers. Therefore, we reinstated a buy rating status.

In our last assessment, we decided to lower Stevanato Group's ( STVN ) rating due to ' Destocking And Valuation Risk . ' As a reminder, having checked Stevanato's peers' lower sales growth estimates in 2024 and anticipating a decline in EBITDA and net profit due to start-up costs and an unfavorable exchange rate effect, the company's valuation was full in our view....

For further details see: