Stevanato Group S.p.A. (STVN): A Bull Case Theory
We came across a bullish thesis on Stevanato Group S.p.A. (STVN) on Best Anchor Stocks' Substack. In this article, we will summarize the bulls' thesis on STVN. Stevanato Group S.p.A. (STVN)'s share was trading at $22.61 as of 22nd May. STVN's trailing and forward P/E were 43.55 and 37.45 respectively according to Yahoo Finance.
A biopharmaceutical facility with technicians working on a manufacturing line of treatments and preventions.
Stevanato's recent earnings release highlighted a sharp return to growth, with Q1 revenue up 9% to €256.6 million—far ahead of expectations—driven primarily by strong performance in its high-value products (HVPs) and the ramp-up of new facilities in Latina and Fishers. Despite this impressive beat, the stock gave up early gains, staying true to its volatile trading pattern.
However, the real story lies in Stevanato's compelling margin expansion potential and what appears to be sandbagged guidance. Margins improved meaningfully in Q1, yet remain artificially depressed due to underutilized vial capacity, dilutive effects from new plant ramp-ups, and a still-recovering engineering division. Net income grew 41% on just 9% revenue growth, illustrating the leverage embedded in the model. Management's commentary suggests that over time, as engineering margins normalize and the HVP mix continues to increase—especially with major projects like Ez-Fill cartridges for likely customers such as Novo Nordisk—the company could unlock over 1,000 basis points in margin expansion.
Furthermore, current HVP gross margins are estimated to be double those of bulk products, signaling substantial upside. While guidance for 2025 was only modestly raised and Adjusted EBITDA lowered slightly due to tariffs, this conservatism appears more like strategic sandbagging than a real slowdown. Based on Q1 results and seasonal trends, full-year revenue could exceed management's guidance by 2.5%, implying double-digit growth is very much in reach. With expanding margins, a durable growth runway driven by mix shift and replacement demand, and strategic positioning in the U.S., Stevanato offers a long-term upside narrative not reflected in current valuation multiples.
Stevanato Group S.p.A. (STVN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held STVN at the end of the fourth quarter which was 11 in the previous quarter. While we acknowledge the risk and potential of STVN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than STVN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article was originally published at Insider Monkey.
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