Investment firm Stephens has resumed its coverage of West Pharmaceutical Services, Inc. (WST, Financial), assigning an Overweight rating and setting a price target of $250. Describing the company as a leader in the field of containment solutions for injectable medications, Stephens highlights West's strategic positioning within the healthcare and life sciences sectors.
West Pharmaceutical aims for organic growth of 7% to 9% annually, coupled with a 100 basis point improvement in margins each year. According to the analysis, factors such as the rising demand for biologics, the popularity of GLP-1s, and increasingly stringent regulatory standards are anticipated to boost volumes and the need for high-value components. These industry trends are expected to support the company’s growth objectives.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for West Pharmaceutical Services Inc (WST, Financial) is $280.21 with a high estimate of $325.00 and a low estimate of $240.00. The average target implies an upside of 38.79% from the current price of $201.90. More detailed estimate data can be found on the West Pharmaceutical Services Inc (WST) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, West Pharmaceutical Services Inc's (WST, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for West Pharmaceutical Services Inc (WST, Financial) in one year is $348.56, suggesting a upside of 72.64% from the current price of $201.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the West Pharmaceutical Services Inc (WST) Summary page.
