Stevanato Starts Year With Solid Q1, Sturdy Switching Costs Support Its Moat; Shares Undervalued

Narrow-moat Stevanato had an overall good quarter, and while top-line growth came in a tad below our forecast, this was offset by operating margin above our expectations. Though there is little change to our fundamental view, we are decreasing our fair value estimate to $19.40 from $21.50 to account for the changing euro-united states dollar exchange rate, and we have also slightly decreased our growth forecast for next year. Shares are still moderately undervalued, in our view.