2024-03-11 22:24:24 ET
Summary
- Stevanato's peers decided to lower sales growth estimates in 2024 due to clients' destocking activities.
- The company's EBITDA and net profit declined due to start-up costs and an unfavorable exchange rate effect.
- Stevanato's valuation looks full compared to its peers. We move our rating to neutral.
Following the Fiscal Year 2023 results release, we are back to analyze Stevanato Group ( STVN ). As a reminder, our team has a buy-rating view supported by Secular Tailwinds In Biologics Demand , 2) a CAPEX plan with an economic moat, and 3) a margin expansion projection. After the Q4 results, we are moving Stevanato Group to a neutral rating. Indeed, the company has already reached our target price set at $31.8 per share, and even if it now trades at a lower level, we believe there are more downside risks than upside potential. In a nutshell, our team is optimistic about long-term demand (Fig 1), but we have an equal weight view on the company, mainly based on late-cycle destocking and a high valuation....
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For further details see:
Stevanato: Destocking And Valuation Risk (Rating Downgrade)