Stevanato Group assumed with an Equal Weight at Morgan Stanley

Morgan Stanley analyst Tejas Savant assumed coverage of Stevanato Group (STVN) with an Equal Weight rating and a price target of $23, down from $24. Stevanato, with “market leading positions” in the biopharmaceutical injectables end market, is well-positioned to benefit in terms of both top-line and margins from a structural mix shift towards biologics and growth in GLP-1s, but vial destocking headwinds, cost under-absorption related to necessary capacity buildouts and optimization expenses are likely to gate estimate upside in the near-term, the analyst tells investors.