Investing.com -- SCHOTT Pharma AG & Co KgaA (ETR:1SXP) shares fell on Thursday after RBC Capital Markets downgraded the pharmaceutical packaging company, saying its valuation recovery had largely run its course, while highlighting uncertainty around orders linked to GLP-1 weight-loss drugs.
Shares were down 1.07% at €23.10, after touching an intraday low of €21.90, underperforming the broader SDAX, which was up 1.3%.
RBC lowered its recommendation to "sector perform" from "outperform" but raised its price target to €25 from €21. Analyst Charles Weston said the stock's re-rating was largely complete, with the bank's earnings estimates now broadly aligned with market expectations.
The downgrade follows three consecutive quarters of results exceeding analyst expectations since SCHOTT Pharma reset its financial guidance in late 2025. During that period, the shares outperformed by 55%, according to the analyst assessment.
RBC also highlighted the recent selloff in competitor Stevanato Group as a warning about the potential volatility of customer orders among suppliers of drug containment and delivery systems used in GLP-1 treatments.
Stevanato shares plunged more than 25% on November 3 after the Italian pharmaceutical packaging manufacturer warned that lower-than-anticipated GLP-1-related volumes from one major customer would temporarily moderate its revenue growth in 2027.
Although Stevanato maintained its 2026 financial guidance, the prospect of weaker volumes next year unsettled investors.
SCHOTT Pharma has benefited from strong demand for specialised drug containment solutions, particularly prefillable glass syringes used for GLP-1 medications, according to RBC. The company reported nine-month revenue of €769.8 million for the first nine months of its 2026 financial year, up 4.4% at constant exchange rates.
Third-quarter revenue increased 8.3% at constant currencies to €281.8 million, while the share of high-value solutions remained strong at 57% of nine-month revenue. However, the nine-month EBITDA margin declined to 26.7% from 28.9% a year earlier.
SCHOTT Pharma maintained its updated full-year 2026 guidance, expecting revenue growth of 5% to 6% at constant currencies and an EBITDA margin of 27% to 28%.
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