Stevanato Group: Balancing Strong BDS Growth with Engineering Challenges – Hold Rating Amid Valuation Concerns

Tejas Savant, an analyst from Morgan Stanley, maintained the Hold rating on Stevanato Group (STVN – Research Report). The associated price target was raised to $24.00.

Tejas Savant’s rating is based on a combination of factors that reflect both the strengths and challenges faced by Stevanato Group. The company’s first-quarter performance showed strong results in its Biopharmaceutical and Diagnostic Solutions (BDS) segment, particularly with a 25% growth in High-Value Solutions, which contributed significantly to the overall revenue. However, this positive performance was offset by a decline in the Engineering segment, where revenue decreased due to lower sales in certain areas, despite some growth in assembly and packaging.
Despite the encouraging start to the year and improvements in facilities and demand stabilization, the stock’s recent price increase has made it less attractive at its current valuation of 19.5 times the estimated 2025 EBITDA. As a result, Tejas Savant has opted for a Hold rating, suggesting that while the company is on track with its strategic plans, a better entry point might be awaited for investors seeking significant upside potential.