Research Alert: CFRA Raises Rating On West Pharmaceutical Services, Inc. To Buy From Hold
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 $350, up from $267 and represents 41x our 2026 EPS estimate (up $0.63 to $8.53; 2027's up $0.61 to $9.42), near WST's five-year forward average of 42x. Our valuation reflects our view of the strength of the High-Value Products (HVP) business, as well as a growing market for GLP-1 elastomer sales and significant balance sheet health (negative net debt). We anticipate new drug development will support the HVP business, as biologics made up around 42% of sales during Q1 2026. Further, GLP-1 drug demand may provide a new catalyst for sales of syringes. WST secured a multiyear contract with Novo Nordisk for all its GLP-1 primary packaging elastomer needs, and GLP-1 elastomers comprised 10% of Q1 2026 sales. Combined with sales in the West Vantage segment, GLP-1 exposure made up 18% of total net sales during the quarter. The Annex 1 regulatory updates for medical manufacturing also provide tailwinds for HVP via quality upgrade projects for existing WST components, in our view.