Investing.com -- Shares of Schott Pharma fell more than 4% Friday after Deutsche Bank downgraded the pharmaceutical packaging company to Hold from Buy, saying the stock's strong run has left little room for further gains.
"With the stock up nearly 70% year to date and the valuation now at what we consider a more demanding level, we struggle to see further upside potential for the time being," analyst Falko Friedrichs said in a note.
Friedrichs also flagged a possible dent to next year's outlook. A €15 million one-off payment received in fiscal 2026 equals about 1.5% of group sales and could lead the company to guide slightly below its medium-term growth target of 6% to 8% for fiscal 2027.
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He expects new guidance to project 5% to 7% organic growth and forecasts 5.5%, versus consensus of 7%. Adjusted EBITDA guidance could point to flat to slightly improving margins, and he forecasts them flat.
The analyst said Schott Pharma has clearly made progress in delivering on expectations again and that the medium-term outlook remains attractive. But even so, "we would wait for a better entry point and move to the sidelines," he added.
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