West Pharmaceutical Services (United States)
WST
$351.02
+0.65%
West Pharmaceutical Services, Inc. is a leading global manufacturer of packaging components and delivery systems for the pharmaceutical, biotechnology, and generic drug industries, including elastomer stoppers, seals, plungers, and auto-injectors. The company holds a dominant market position as a critical supplier to injectable drug makers, with a strong focus on high-growth areas like GLP-1 receptor agonists and large-molecule biologics. The current investor narrative centers on the company's robust growth driven by the booming demand for GLP-1 weight-loss drugs, which has led to strong earnings beats and upward guidance revisions, while also raising questions about capacity expansion and valuation sustainability.…
WST
West Pharmaceutical Services (United States)
$351.02
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WST 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on West Pharmaceutical Services (United States)'s 12-month outlook, with a consensus price target around $404.73 and implied upside of +15.3% versus the current price.
Average Target
$404.73
0 analysts
Implied Upside
+15.3%
vs. current price
Analyst Count
—
covering this stock
Price Range
$340 - $459
Analyst target range
West Pharmaceutical is covered by 15 analysts, with a consensus recommendation of 'Strong Buy' (mean rating of 1.44 on a 1-5 scale). The average price target is $403.93, implying an upside of 18.5% from the current price of $340.96. The distribution is bullish, with no sell ratings and a majority of buy/overweight ratings. The target price range is $340.00 to $459.00, with the low end near the current price, suggesting limited downside risk. The high target of $459 implies a 34.6% upside, reflecting expectations of continued GLP-1-driven growth and margin expansion. Recent analyst actions have been positive, with Barclays upgrading from Equal Weight to Overweight in June 2026, and Evercore ISI reiterating Outperform, indicating growing confidence in the company's growth trajectory.
WST Technical Analysis
West Pharmaceutical's stock has been in a strong uptrend over the past year, with a 1-year price change of +42.5%, significantly outperforming the S&P 500's +18.2% gain. The current price of $340.96 sits at 88.3% of its 52-week range (between $223.83 low and $386.00 high), indicating the stock is trading near its highs, reflecting robust momentum but also potential overextension. The stock's beta of 1.159 suggests it is moderately more volatile than the market, which is typical for a high-growth healthcare supplier.
Beta
1.14
1.14x market volatility
Max Drawdown
-24.8%
Largest decline past year
52-Week Range
$224-$386
Price range past year
Annual Return
+47.0%
Cumulative gain past year
| Period | WST Return | S&P 500 |
|---|---|---|
| 1m | -1.9% | +2.5% |
| 3m | +9.0% | +5.2% |
| 6m | +41.0% | +11.5% |
| 1y | +47.0% | +22.6% |
| ytd | +27.0% | +12.9% |
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WST Fundamental Analysis
West Pharmaceutical's revenue growth has been accelerating, with Q1 2026 revenue of $844.9 million, up 21.0% year-over-year, compared to 8.5% growth in Q1 2025. The company's proprietary products segment, which accounts for about 80% of revenue, is driving this growth, particularly due to strong demand for components used in GLP-1 drugs. Gross margin improved to 35.1% in Q1 2026 from 33.3% in the prior year quarter, reflecting operating leverage and favorable product mix. Net income for Q1 2026 was $138.8 million, up from $89.8 million in Q1 2025, a 54.6% increase, with net margin expanding to 16.4% from 12.9%.
Quarterly Revenue
$844900000.0B
2026-03
Revenue YoY Growth
+21.0%
YoY Comparison
Gross Margin
35.1%
Latest Quarter
Free Cash Flow
$458000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is WST Overvalued?
Given that West Pharmaceutical is profitable, the PE ratio is the most appropriate valuation metric. The trailing PE is 40.3x, while the forward PE is 34.3x, indicating the market expects earnings growth of about 17.5% over the next year. This forward PE is at a premium to the broader medical instruments industry average of around 25x, representing a 37% premium, which is justified by the company's superior growth and profitability. Historically, the stock's PE has ranged from 30x to 63x over the past three years, and the current trailing PE of 40.3x is below the midpoint of that range, suggesting the stock is not overvalued relative to its own history.
PE
40.3x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 30x~53x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
27.0x
Enterprise Value Multiple