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Investing.com -- Deutsche Bank downgraded Schott Pharma to “hold” from “buy” and cut its price target to €19 from €29 after the healthcare company issued weaker guidance and trimmed its medium-term outlook. The shares last closed at €17, sending shares down over 5% on Monday.

Analyst Falko Friedrichs wrote that Schott Pharma pre-released its FY25 figures and issued new FY26 guidance late Thursday. The brokerage said the preliminary FY25 numbers suggest fourth-quarter EBITDA was 6% above consensus expectations.

However, the medium-term targets were revised lower. Schott Pharma now expects 6% to 8% constant-currency sales growth over the period, down from at least 10% previously. 

The company also projects EBITDA margin improvement toward 30%, compared with a prior aim in the low 30s.

The new FY26 guidance was characterized as the major setback. Schott Pharma forecasts 2% to 5% constant-currency sales growth and an EBITDA margin of about 27%, compared with 28.4% in FY25.

Deutsche Bank said the outlook reflects reduced demand from a key customer for glass syringes and subdued market conditions for those products. The brokerage added that it believes the customer is not related to GLP-1 treatments.

According to the brokerage, the updated view suggests about 13% downside to consensus earnings estimates and signals another transition year in FY26.

Deutsche Bank also said the sudden weakness in the glass syringes market raises concern and that visibility on recovery timing appears unclear.

Investing.com - European stocks traded in a muted fashion Monday, with investors cautiously awaiting the conclusion of the Federal Reserve’s two-day policy meeting later in the week.

At 03:25 ET (08:25 GMT), the DAX index in Germany dropped 0.1% and the CAC 40 in France slipped 0.3%, while the FTSE 100 in the U.K. rose 0.1%. 

Fed policy decision in focus  

The U.S. central bank is widely expected to cut interest rates on Wednesday, especially after the delayed release of September’s core personal consumption expenditures price index came in softer than expected at the end of last week.

Fed funds futures are pricing in a roughly 88% chance of a Fed cut, according to CME’s FedWatch tool.

However, the signaling of future monetary policy remains open given the expected dissent among the Fed policymakers over the extent of inflation concerns and the health of the overall U.S. economy.

More central banks set to meet  

The Federal Reserve isn’t the only central bank making policy decisions this week, with the Swiss National Bank, the Reserve Bank of Australia and the Bank of Canada also due to hold meetings this week.

Next week sees the Bank of England, the Bank of Japan and the European Central Bank pronounce their latest views of monetary policy.

German industrial production rose in October

German industrial production rose much more than expected in October, official data showed on Monday, offering hope that the eurozone’s dominant economy was recovering as the year grinds to a close.

Industrial production increased by 1.8% compared with the previous month, the federal statistics office said on Monday, ahead of the predicted 0.4% rise.

The German Economic Institute IW forecast last week that Germany’s economic recovery will remain subdued next year as exports struggle and global trade slows. 

The IW forecast Germany’s real gross domestic product would grow only slightly this year, by 0.1% after two years of contraction, before hitting 0.9% next year, marking a notable increase.

Unilever’s ice cream spinoff to start trading

In the European corporate sector, Unilever (LON:ULVR) stock retreated Monday after the consumer goods company said it had completed the demerger of its ice cream business.

The Magnum Ice Cream Company, now the world’s largest standalone ice cream business and home to brands including Wall’s, Ben & Jerry’s and Cornetto, has received a primary listing on Amsterdam’s Euronext exchange.

Secondary listings are also set to begin trading in London and New York.

Crude trades near two-week highs

Oil prices edged higher Monday, trading near two-week highs on Monday as investors expect a likely Federal Reserve interest rate cut this week to lift economic growth and energy demand.

Brent futures gained 0.3% to $63.92 a barrel, and U.S. West Texas Intermediate crude futures rose 0.3% to $60.28 a barrel.

Both contracts closed Friday’s trading session at their highest levels since November 18.

Aside from the Fed meeting, progress towards peace in Ukraine remains slow, and Reuters reported that the Group of Seven countries and the European Union are in talks to replace a price cap on Russian oil exports with a full maritime services ban, which would likely further curb supply from the world’s second-largest oil producer.

Investing.com -- Magnum Ice Cream shares started trading for the first time on Monday in Amsterdam and London markets, opening at €12.20 on the Amsterdam exchange.

The opening price fell below the technical reference price of €12.80 that was announced on Friday. Despite the lower-than-expected debut price, Magnum shares have been moving upward during early trading sessions.

Meanwhile, parent company Unilever saw its stock rise 0.9% on the London Stock Exchange following the ice cream brand’s market debut.

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Investing.com -- Smith & Nephew PLC (LON:SN) announced ambitious new mid-term targets on Monday, aiming for 6-7% revenue compound annual growth rate (CAGR) through 2028, significantly above current analyst consensus of 5.2%.

The medical technology company outlined its "RISE" strategy at its Capital Markets Day in London, targeting 9-10% trading profit CAGR, over $1 billion in free cash flow, and 12-13% return on invested capital (ROIC) by 2028.

For 2025, Smith+Nephew reaffirmed its revenue growth guidance of around 5% while raising its trading margin guidance to at least 19.5%, up from the previous 19-20% range. The company also increased its free cash flow target to around $800 million from $750 million, driven by working capital improvements and operational efficiency.

The company expects post-tax ROIC to exceed 9% for 2025, excluding portfolio rationalization effects. Smith+Nephew identified potential to reduce gross inventory by $500 million through portfolio changes and will take a $200 million non-cash provision in its 2025 accounts.

Looking ahead to 2026, Smith+Nephew provided preliminary guidance of approximately 6% underlying revenue growth with profit growth outpacing revenue due to margin expansion from operating leverage.

The company anticipates $800 million in free cash flow and ROIC above 10% for 2026.

Investing.com -- Morgan Stanley downgraded the Italian luxury automaker Ferrari NV (BIT:RACE) to "equal-weight" from "overweight" and cut its price target to $425 from $520, citing limited near-term upside as the company prioritizes brand preservation over volume growth.

The downgrade reflects Ferrari’s strategic decision to strictly limit production through 2030, which analyst Edouard Aubin views positively for long-term brand value but says will constrain near-term revenue expansion. 

The Maranello-based supercar manufacturer’s shares have fallen 17% year-to-date in euros, with the forward price-to-earnings ratio contracting from 46x to 38x.

"We view investor concerns as generally fair," Morgan Stanley said, pointing to three key challenges, namely, medium-term guidance below expectations, residual value pressures in secondary markets, and execution risks surrounding Ferrari’s first electric vehicle launch in late 2026.

Morgan Stanley projects fiscal 2026 constant currency sales growth of 6.4%, below the 8.2% consensus estimate, with the year proving "back-end loaded" due to model transition timing. 

The analysts forecast Ferrari will ship approximately 13,900 units in fiscal 2026, representing volume growth of just 1.5% CAGR through 2030, a sharp deceleration from the 6% posted between 2012 and 2022.

The company’s Cars and Spare Parts division, which accounts for 84% of group sales, is expected to grow just 3% in the first quarter as high-profile models including the SF90 Spider and Daytona SP3 phase out while new launches "won’t have gained full production steam until the end of the year," the brokerage said.

Ferrari’s F80 supercar, priced at €3.6 million and succeeding the LaFerrari, will ship just 170 units in fiscal 2026 according to Morgan Stanley’s estimates, ramping gradually from 5 units in fourth quarter 2025. 

The analysts project the F80 could add approximately €200 million in incremental revenue during 2026.

Morgan Stanley forecasts fiscal 2026 EBIT of €2.2 billion, approximately 4% below consensus estimates of €2.3 billion, with an EBIT margin of 29.6%. 

The analysts expect selling, general and administrative expenses to rise to 9% of revenues from 8.8%, "reflecting the costs associated with a busy product-launch cycle," while depreciation and amortization will "gradually ramp up over the course of the year, driven by the expanding product pipeline," Barclays said. 

Ferrari’s Formula 1-linked Sponsorship, Commercial and Brand division faces headwinds as the team ranks fourth in the 2025 season versus second place in 2024.

Morgan Stanley projects this division’s growth will moderate to 8% in fiscal 2026 from an estimated 24% in fiscal 2025.

The $95 price target reduction stems partially from estimate cuts, approximately 5% to fiscal 2026-2027 earnings per share, but primarily from a valuation methodology change. 

Morgan Stanley shifted from a 15-year discounted cash flow framework to a 10-year DCF with 4.5% terminal growth rate, stating this "reduces long-range forecasting uncertainty" for the luxury brand.