William Blair downgraded Stevanato Group S.p.A. to Market Perform from Outperform, pointing to a weaker outlook for 2027. The company’s shares fell 27% over the past week to $14.10, according to the report, as investors reacted to concerns about its near-term prospects.
The analyst firm described 2027 as a transition year, citing lower-than-expected growth in GLP volumes from one of Stevanato’s largest customers. That customer is reducing its inventory of single-chamber syringes ahead of the planned launch of a dual-chamber product. Management also linked delays in engineering orders to the same customer.
Stevanato’s initial outlook calls for low-single-digit growth in 2027, with a free cash flow inflection now expected no earlier than 2028, when the company anticipates a return to more normal growth. Management said it views low-single-digit growth as the floor for next year. Formal guidance is expected in March.
William Blair also highlighted the continued weakness in the Engineering segment, which has declined for 11 consecutive quarters. The firm said the outlook effectively signals a reduction in expectations for the Biopharmaceutical and Diagnostic Solutions business, as GLP-related demand had previously been presented as a durable and visible growth driver.
In its latest reported quarter, Stevanato’s revenue rose 8% to €326.1 million, exceeding Wall Street expectations, while adjusted diluted earnings per share came in at €0.16, in line with forecasts. The company cautioned that reduced GLP-1-related volumes from a key customer could slow growth in 2027.
Sources: Investing.com News.