Why this new drug delivery alliance matters for Stevanato Group

Datwyler’s new collaboration with LTS Device Technologies and Stevanato Group (STVN) centers on large volume, on body subcutaneous drug delivery, targeting in home use and the growing role of biologic therapies.

Stevanato Group’s latest news on large volume drug delivery comes after a tougher period for the stock, with a 19.19% decline in the 3 month share price return and a 13.33% drop in the 1 year total shareholder return. This suggests sentiment has cooled even as partnerships highlight how the business is positioning around biologics and self administration trends.

If this collaboration has you thinking more broadly about healthcare devices and drug delivery, it could be a useful moment to scan healthcare stocks for other ideas in the sector.

With the share price under pressure, recent annual revenue of €1,170.395 and net income of €140.597, plus a current price of $19.75 against an analyst target of $28.61, is there a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 31.4% Undervalued

Compared with the last close of $19.75, the most followed narrative points to a fair value of $28.78, built on detailed long term earnings assumptions.

Scaling commercial production at the Latina and Fishers greenfield sites, along with business optimization and an increased mix of high-value solutions, is expected to unlock meaningful operating leverage as utilization ramp-up reduces margin dilution and supports consolidated gross margin and EBITDA margin improvements over the next several years.

Curious how that capacity build out translates into higher earnings, richer margins, and a premium future P/E multiple? The full narrative lays out the step by step financial case.

Result: Fair Value of $28.78 (UNDERVALUED)

However, you still need to weigh risks such as ongoing capital spending that keeps free cash flow under strain and heavy reliance on a handful of large biopharma customers.

Another View: Our DCF Model Sees Less Upside

While the popular narrative points to a fair value of $28.78 and calls Stevanato 31.4% undervalued, our DCF model lands closer to $16.13 per share, which would make the current $19.75 price look expensive. Which set of assumptions feels more realistic to you?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Stevanato Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 862 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Stevanato Group Narrative

If you look at the numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can build a full Stevanato view yourself in just a few minutes, starting with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Stevanato Group.

Ready for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.