Deutsche Bank has upgraded Schott Pharma’s stock to Buy from Hold and increased its price target to €22 from €16, citing an anticipated pick-up in growth and margin improvement in the latter half of the year.
Analyst Falko Friedrichs said the first half of the year for Schott Pharma was held back by weaker demand from a major customer of glass syringes, but he expects sales momentum to recover in the third and fourth quarters alongside improving profitability.
“Given this outlook, we believe the full-year 2026 guidance should be achievable, at least at the midpoint,” Friedrichs wrote.
Market reaction was immediate: Schott Pharma shares rose more than 8% in early trading, with that move recorded by 07:15 GMT.
Schott Pharma produces glass and polymer packaging for injectable medicines - a product range that includes prefillable syringes, vials, cartridges and ampoules used for biologics, vaccines and other therapeutics. The company was separated from German glassmaker Schott AG and began trading on the Frankfurt Stock Exchange in 2023.
Friedrichs projects the business will revert to its medium-term targets starting in fiscal 2027, which call for organic sales growth of 6-8% and continued margin expansion. He also highlighted the stock’s valuation: Schott Pharma trades at 16 times estimated 2027 earnings, representing a discount of roughly 30% to its nearest peer, Stevanato.
On that valuation basis Friedrichs described the current price as "attractive" given the improving growth outlook.
The company maintains a global manufacturing footprint with 17 production sites located across Europe, the Americas and Asia, and competes in the pharmaceutical packaging market with Italy’s Stevanato Group.
This update from Deutsche Bank ties the near-term investment case to a recovery in end-customer demand and to margin gains later in the year. The bank’s revised target and upgrade reflect its view that Schott Pharma can at least achieve the midpoint of 2026 guidance if the anticipated H2 improvements materialize.