Stevanato: GLP-1-Driven Strength Offset by Engineering Weakness Keeps Risk-Reward Balanced at Hold

Morgan Stanley analyst Kallum Titchmarsh maintained a Hold rating on Stevanato Group yesterday and set a price target of $24.00.

Kallum Titchmarsh has given his Hold rating due to a combination of factors, balancing solid execution in core operations against ongoing uncertainties in other areas of the business. He views Stevanato’s strong finish to the year, led by robust demand for high-value drug delivery solutions within the BDS division and supportive margin trends, as a clear positive. However, he also highlights that much of the recent strength is closely tied to GLP-1–related demand, where visibility beyond 2027 remains limited given early-stage format rollouts and typically shorter contract durations.

At the same time, Titchmarsh points to persistent weakness in the Engineering segment, which not only underperformed expectations in the latest quarter but is also guided to decline further, with little clarity on when conditions might stabilize. This drag tempers the otherwise constructive 2026 outlook, especially given investors’ preference for more predictable growth and cash generation. Until Stevanato demonstrates a more durable growth profile beyond GLP-1 tailwinds, clearer recovery in Engineering, and a more competitive free cash flow trajectory, he believes the risk‑reward is balanced, supporting a Hold stance rather than a more bullish rating.

Titchmarsh covers the Healthcare sector, focusing on stocks such as Stevanato Group, Danaher, and GRAIL Inc. According to TipRanks, Titchmarsh has an average return of 3.2% and a 34.85% success rate on recommended stocks.