Schott Pharma Stock Rises as Barclays Upgrades Rating on Growth Outlook

Schott Pharma shares climbed more than 4% in early Frankfurt trading after Barclays upgraded the pharmaceutical packaging company to Overweight, citing improving fundamentals and expectations for accelerating earnings growth.

Barclays believes Schott Pharma has reached an inflection point following three years of downward earnings revisions. The brokerage expects stronger performance to be supported by renegotiated contracts, recovering polymer demand, and increased sales of ready-to-use and specialty vials. Its earnings-per-share forecast for 2028 is around 6% above market consensus.

Since Schott Pharma's 2023 stock market listing, earnings expectations have faced repeated cuts due to customer destocking, excess capacity in the vial market, weaker demand for glass pre-filled syringes (PFS), and slowing polymer orders. Barclays now considers most of these pressures to be easing.

Analysts highlighted a major renegotiated PFS contract, new polymer applications that could compensate for lower mRNA-related demand, and Schott Pharma's leading position in pharmaceutical vials as key growth drivers.

Schott Pharma stock has gained approximately 45% year-to-date, significantly outperforming the SXDP index, which has fallen about 2%. The rally has been supported by stronger peer valuations and an upgrade to the company's fiscal 2026 guidance.

Barclays forecasts Schott Pharma's growth rate will accelerate from 5.8% in fiscal 2026 to 8.6% by fiscal 2030. Its fiscal 2030 projections are also around 3% above Bloomberg consensus for EBITDA and 6% higher for EPS.

Long-term pharmaceutical packaging demand could provide another tailwind. Barclays expects increasing adoption of injectable medicines, including biologics, biosimilars, and GLP-1 drugs, to benefit glass packaging suppliers. The primary pharmaceutical packaging market is projected to grow at a 7% compound annual rate between 2025 and 2030.

However, customer concentration remains a key risk. One GLP-1 customer represents roughly 10% of Schott Pharma's revenue. Barclays also noted that Eli Lilly's Zepbound pen-injector approval could affect demand for higher-margin glass pre-filled syringes, although Schott Pharma has reported no current change in customer ordering patterns.