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Research Alert: CFRA Raises Rating On Shares Of West Pharmaceutical Services To Strong Buy From Buy

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price is $390, raised from $350. This is 45.2x our 2026 EPS estimate (up $0.09 to $8.62; 2027 estimate up $0.13 to $9.55), above WST's five- and 10-year forward averages of 41.9x and 42.2x, respectively. Our valuation reflects the strength of the HVP business, with capital expansion plans for additional HVP capacity, as well as a growing market for GLP-1 elastomer sales and significant balance sheet health (negative net debt). WST leads all S&P Composite 1500 Life Sciences Tools and Sevices firms in YTD performance (+18% through May 8) despite significant pressure on the sub-industry (-17%). We think WST remains well positioned to benefit from GLP-1 demand as well as non-GLP-1 biologics growth, offering less exposure to cyclicality in academia/government R&D budgets and adverse China policies that we think are pressuring peers. We see near-term sales, margin, and earnings growth supporting WST's valuation, with negative net debt supporting financial flexibility and lowering downside risk.

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